Bithumb fined $136K for sending user data abroad without consent. The PIPC penalty adds to regulatory pressure on South Korean crypto exchanges already facing strict AML rules and a new virtual asset law.
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South Korea's data protection regulator fined Bithumb 210 million won, about $136,000, for transferring user data to overseas entities without proper consent. The penalty followed a multi-month investigation by the Personal Information Protection Commission.
The commission found that Bithumb had shared personal information of its users with foreign partners. That data included names, phone numbers, and email addresses. South Korean law requires explicit consent before any cross-border transfer of personal data. The exchange did not inform users or secure their approval, the commission said.
Bithumb said it would review the decision and consider its next steps. The exchange operates one of the largest crypto trading platforms in South Korea by volume. It has faced regulatory scrutiny before, including a 2021 raid over alleged fraud by its former chairman.
The fine is small relative to Bithumb's revenue. The penalty signals a stricter enforcement posture by the PIPC toward crypto exchanges. The commission has been increasing scrutiny of data practices across the financial sector. In 2023 it fined Google and Meta for similar violations, though those penalties were far larger.
For traders, the fine raises questions about how exchanges handle personal data and what protections exist. It also adds to the regulatory burden on South Korean crypto platforms. Those platforms already face strict anti-money laundering rules and a pending virtual asset user protection law that could impose licensing requirements and custody standards.
The PIPC said it would continue to monitor compliance and could impose further penalties for violations. The commission did not specify which overseas entities received the data. It also did not say whether Bithumb's users would be notified retroactively.
The investigation began in early 2024 and concluded with the announcement this week. The commission's decision is subject to appeal.
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