South Korean cryptocurrency exchange Bithumb is facing fresh regulatory heat. The country’s Personal Information Protection Commission (PIPC) ordered the major trading platform to pay a $136,000 fine (approximately 190 million KRW) after an investigation revealed the exchange shared sensitive user information with overseas platforms without proper consent.
According to the PIPC’s official notice, Bithumb breached strict personal data protection laws during routine operations, specifically during order book sharing and international virtual asset transfers. Regulators emphasized that while sharing data is often necessary to comply with global anti-money laundering (AML) standards, exchanges must still strictly respect users’ rights to data self-determination and follow legal procedures before sending information across borders.
The investigation highlighted a specific mix-up between September and November 2025. Bithumb shared its Tether (USDT) order books with the crypto exchange BingX, despite only having explicit user consent to share that data with Stellar. On top of that, the watchdog found that Bithumb had routed user information to 13 other overseas exchanges without jumping through the required legal hoops.
Bithumb’s Ongoing Legal Hurdles
This data privacy fine is just the latest chapter in a long string of regulatory headaches for Bithumb. As one of the largest crypto exchanges in South Korea, the platform has been under an intense microscope for months.
Back in March, South Korea’s financial watchdog attempted to slap Bithumb with a harsh six-month suspension over alleged violations of the Financial Information Act. While a local court stepped in and reversed that suspension in April, the exchange hasn’t been able to catch a break. Just recently, police raided Bithumb’s corporate offices as part of a high-profile investigation into alleged nepotism involving South Korean lawmaker Kim Byung-gi.
South Korea Tightens Controls on the Crypto Market
The crackdown on Bithumb happens against a backdrop of sweeping changes for South Korean crypto investors. The country’s Finance Ministry recently confirmed that a highly anticipated 22% tax on cryptocurrency gains is officially set to take effect in January 2027. The tax has been delayed multiple times—it was originally slated for 2025—but officials are moving forward as the local market balloons. Data shows that roughly 16 million South Koreans, nearly a third of the population, held digital assets as of early 2025.
Local law enforcement is also rapidly scaling up its tech capabilities. The Korean National Police Agency (KNPA) recently signed a partnership with blockchain analytics firm Chainalysis to boost its investigative muscle. A primary driver behind this alliance is the growing need to detect and neutralize sophisticated, North Korea-linked crypto hacks, placing South Korean police on the front lines of global cyber defense.
