- Bithumb is seeking to reappoint CEO Lee Jae-won for another two-year term despite recent regulatory penalties for alleged anti-money laundering failures.
- The exchange faces a six-month suspension on external crypto transfers for new clients and a fine of $24.2 million, alongside an investigation into a costly Bitcoin distribution error.
- South Korea‘s crypto industry is growing rapidly, with over 16 million users and a projected market revenue of $1.3 billion in 2026 under a more supportive regulatory environment.
- Another regulatory probe into order book sharing could impact the exchange’s ability to renew its operating license later this year.
In a contentious move, Bithumb, South Korea’s second-largest cryptocurrency exchange, is pushing to reappoint CEO Lee Jae-won at its March 31 shareholders’ meeting, according to industry sources, despite facing severe regulatory penalties
His current term expires at the end of the month, and a successful vote would secure his position for another two years. Bithumb trails only Upbit in 24-hour trading volume according to CoinGecko data
However, regulators have recently hit the exchange with a six-month partial suspension on processing external crypto transfers for new customers and a $24.2 million fine. This penalty stems from alleged anti-money laundering failures earlier this month
Consequently, the exchange will be barred from such transfers for new users from March 27 to September 26. This regulatory action adds to a significant operational error in February
During a promotional event, Bithumb mistakenly distributed 620,000 Bitcoin to users instead of the intended 2,000 Korean won ($1.40) per person. The exchange could not back up this massive, erroneous distribution
Meanwhile, it is also awaiting the outcome of another probe into its order book sharing with an overseas platform. An industry official told the Korea Times that “Bithumb will be on edge awaiting the results of ongoing regulatory probes, as the company still needs to renew its virtual asset service provider license”
Further penalties could therefore pose a critical hurdle to its license renewal later this year. The exchange’s push for leadership continuity occurs amid a broader national crypto boom
South Korea’s cryptocurrency industry has benefited from a friendlier environment after the election of President Lee Jae-myung last June. The government has advanced various crypto-related laws, including legislation to legalize stablecoins
Three months earlier, crypto exchange users in the country had already surpassed 16 million, representing over 30% of the population. The market is projected to reach $1.3 billion in revenue in 2026, according to the online data platform Statista
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
