Cryptocurrency exchange Bithumb fined $ 24 million due to problems with customer verification

Financial regulators in South Korea have fined crypto exchange Bithumb 37 billion won (about $ 24.8 million) for violating customer identification rules. This was reported by Yonhap news agency with reference to the Financial Intelligence Unit (FIU).

According to the regulator, the exchange failed to properly verify the identity of users in 6.59 million cases, and also facilitated about 45 thousand transactions with 18 unregistered foreign platforms. In addition to the fine, the FIU plans to impose a six-month partial suspension on Bithumb, and CEO Lee Jae-won will receive a formal disciplinary action. The company has been given 10 days to respond before the sanctions are finalized.

The steps against Bithumb come amid the rapid growth of the cryptocurrency industry in South Korea. According to the government, in 2025, more than 16.29 million people opened accounts on the country’s five largest exchanges — Upbit, Bithumb, Coinone, Korbit, and Gopax. Experts predict that the number of investors may reach 20 million, which is almost half of the country’s population.

According to statistics, in March 2024, there were about 14 million crypto investors in the country, and in November of the same year, more than 500 thousand new users were added. It was then that cryptocurrencies received additional attention amid political events in the United States, when Donald Trump announced his support for digital assets during the presidential campaign.

Thus, the Bithumb case has become one of the largest examples of tightening control over the crypto market in South Korea. It demonstrates that regulators are striving to combine the rapid growth of the industry with strict adherence to transparency and security rules for investors.