Bithumb may face a fine exceeding Upbit for violations of the Specific Financial Transactions Act
Svmuu News: Bithumb is facing sanctions for violating South Korea's "Specific Financial Transaction Information Act." South Korea's financial regulator plans to convene an Anti-Money Laundering Sanctions Review Committee on March 16 to make a final decision on the penalty. It is reported that the Korea Financial Intelligence Unit (FIU) has issued a preliminary notice to Bithumb, proposing sanctions for its failure to comply with Anti-Money Laundering (AML) obligations. The proposed sanctions include a six-month partial suspension of business operations and a warning to the CEO. This penalty is more severe than the one previously imposed on Upbit, which involved a three-month partial suspension and a fine of 35.2 billion won. Industry observers anticipate that Bithumb's fine may exceed Upbit's, reaching approximately 37 billion won. The penalty amount will be determined based on the number of unreported overseas exchange transactions. Previously, Upbit was fined 35.2 billion won for failing to report 44,900 transactions, while Korbit, with only 19 unreported transactions, received a fine of 2.7 billion won and an institutional warning. According to the enforcement rules of the Specific Financial Transactions Act, if a violation recurs within three years, the fine can be increased by 10% on top of the original amount. This provision may also affect Bithumb's final penalty. (News1)
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