Bithumb Challenges Six-Month Crypto Transfer Restriction in South Korea

Bithumb is challenging a six-month restriction on new customers’ transfers to outside crypto services, arguing it lacked a legal basis to obtain information identifying the receiving exchange for transfers below 1 million won.

Judges at the Seoul Administrative Court opened the case with an initial hearing Thursday, Oct. 22. South Korea’s Financial Intelligence Unit (FIU), which imposed the restriction, cited 45,772 transfers involving 18 unreported virtual asset service providers from August 2022 through April 2025. The measure limits new Bithumb customers from moving crypto to external services for six months.

Bithumb argued that transfers of 1 million won or more to unreported providers had been blocked under the Travel Rule. Separately, the exchange maintained there had been no actual violations. It argued the rule did not apply to transfers below 1 million won at the time and that it lacked a legal basis to obtain information identifying the receiving exchange. Bithumb also said the FIU did not specify which blocking measures it should have used and called the penalty excessive.

The court directed Bithumb to explain why its controls were inadequate and address whether it acted intentionally or with gross negligence. The next hearing is scheduled for Jan. 28, 2027.