Bithumb Hit With $136K Penalty by South Korean Regulators for Unauthorized Overseas Data Transfers
Following a regulatory investigation, South Korean authorities determined that Bithumb violated user data protection regulations by transferring customer information to numerous international cryptocurrency exchanges.
Regulatory authorities in South Korea have imposed a financial penalty of $136,000 on cryptocurrency exchange Bithumb following the discovery that the platform violated personal data protection regulations by transmitting user information to international destinations.
According to a Thursday announcement from the nation's Personal Information Protection Commission (PIPC), investigators determined that Bithumb had "transferred personal information overseas without the separate consent of the data subjects during the process of order book sharing and virtual asset transfer with overseas virtual asset exchanges."
The violation was linked to Bithumb's sharing of its Tether (USDT) order books from September through November 2025 with BingX, even though the exchange had secured user approval to share such data with Stellar, in addition to transmitting customer information to 13 international exchanges.
"The Personal Information Protection Commission determined that there is a necessity to provide personal information for anti-money laundering purposes when transferring virtual assets to other exchanges, but regarding the overseas transfer of personal information and the data subject's right to self-determination, it was determined that, as this is a closely related matter, it is necessary to strictly comply with the requirements and procedures stipulated in the Protection Act," the notice said, in translation.
As one of South Korea's major cryptocurrency trading platforms, Bithumb has faced heightened regulatory oversight from government authorities.
In March, the nation's financial regulatory body handed down a six-month operational suspension to the exchange due to purported breaches of South Korea's Financial Information Act, though the ruling was overturned by a court in April. More recently this month, law enforcement officials allegedly conducted a raid on Bithumb's business premises as part of an inquiry into claims of nepotism connected to South Korean lawmaker Kim Byung-gi.
South Korean crypto tax set to take effect in 2027
In May, South Korea's Finance Ministry officially confirmed that a 22% taxation rate on cryptocurrency gains would commence in January 2027. The implementation of this tax has experienced multiple postponements after being originally scheduled to begin in 2025, but is projected to impact a significant number of South Korean cryptocurrency holders.
Based on reporting from the Yonhap news agency, approximately 16 million South Koreans held investments in digital assets as of March 2025.
Earlier in the current month, Chainalysis announced that it had executed a memorandum of understanding with the Korean National Police Agency (KNPA), designed to enhance investigative capabilities within South Korea's law enforcement infrastructure.
Among the primary motivations behind the agreement is the objective to more effectively counter cryptocurrency attacks associated with North Korea, with South Korea's police forces "at the forefront" of addressing these security challenges.