South Korean cryptocurrency exchange Bithumb may face a larger fine than rival Upbit for violations of the Act on Reporting and Using Specified Financial Transaction Information, commonly known as the Special Financial Information Act. According to financial industry sources on March 15, the FIU under the Financial Services Commission will hold a sanctions review committee meeting on March 16 to determine the level of penalties against Bithumb. The exchange will present its explanation regarding the alleged violations during the meeting.
The key factor in determining penalties is the number of transactions conducted with unregistered overseas exchanges. Upbit was fined 35.2 billion won and received a three-month partial suspension after authorities found 44,948 such transactions. By comparison, Korbit, which recorded only 19 transactions, received a 2.7 billion won fine and an institutional warning.
Industry observers say Bithumb’s fine could exceed 37 billion won, potentially surpassing Upbit’s penalty, if the number of violations proves significantly larger. Some analysts also note that the law allows a 10% surcharge on fines if a company commits another violation within three years of a previous penalty under the same act. A higher sanction against Bithumb would set a benchmark for overseas-transaction enforcement under the act. The final decision will depend on verifiable transaction counts and the FIU’s assessment at the sanctions review meeting.
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