South Korean regulators are considering imposing heavy penalties on Bithumb, potentially including a six-month partial shutdown.

PANews reported on March 15th that, according to news1, South Korean cryptocurrency exchange Bithumb has received a prior sanction notice from the Financial Intelligence Unit (FIU) for violating anti-money laundering obligations under the Specific Financial Information Act. The company faces a proposed penalty of a partial business suspension for up to six months, along with a warning to its CEO. South Korean financial authorities plan to convene an anti-money laundering sanctions review committee on March 16th to finalize the scope and severity of the penalties.

The proposed penalties are expected to be more severe than the previous sanctions imposed on Dunamu, which was fined 35.2 billion won and ordered to partially suspend operations for three months for violations. Given Bithumb's involvement in more violations, the market widely expects its fine to break the record for regulatory oversight in the South Korean crypto industry. Bithumb responded that it is currently in the preliminary notification stage and will fully explain its rectification progress and compliance improvements in subsequent formal procedures.