South Korea eyes up to six months of service limits for Bithumb after AML and KYC failures

South Korea’s Bithumb is facing a proposed partial suspension of operations for up to six months after regulators identified breaches of anti‑money‑laundering rules; local reports say the restriction would bar virtual‑asset transfers for newly registered users but would not affect existing customer operations ^[1][5].

Authorities cited shortcomings in customer identification and other AML/KYC controls, with news outlets reporting possible fines and disciplinary action against senior management as part of the enforcement measures under consideration ^[6][5].

Industry coverage notes the case underscores rising regulatory scrutiny of crypto exchanges and may influence compliance expectations across the sector, while the reported suspension remains a proposed action pending formal penalties ^[2][1].

Regulators are reportedly weighing a combination of a time‑limited operational restriction, financial penalties and managerial discipline; Bithumb’s status will depend on formal decisions by Korean authorities ^[1][5].