Bithumb Aims to Reappoint CEO Lee Jae-won Amid Recent Regulatory Pain

Bithumb, South Korea’s second-largest cryptocurrency exchange by trading volume, is reportedly seeking to reappoint CEO Lee Jae-won despite recent alleged anti-money laundering failures and other controversies, according to the Korea Times.

The exchange will convene its regular shareholders’ meeting on March 31, and a proposal to keep Lee in the top job will be put to shareholders, the Korea Times reported on Sunday, citing industry sources.

His current term expires at the end of the month, and a successful renewal would keep Lee as the exchange’s CEO for another two years. Cointelegraph has contacted Bithumb for comment.

Upbit is the top South Korean crypto exchange by 24-hour trading volume, according to CoinGecko, followed by Bithumb and Korbit.

Regulators hit Bithumb with penalties

In March, South Korea’s Financial Intelligence Unit reportedly issued Bithumb a six-month partial suspension and a 36.8 billion won ($24.2 million) fine over alleged anti-money laundering failures. 

Under the measures, the exchange will be banned from processing external crypto transfers for new customers from March 27 to Sept. 26.

The exchange also drew regulatory attention in February when it mistakenly credited 2,000 Bitcoin (BTC) per user instead of 2,000 Korean won ($1.40) during a promotional event, distributing a total of 620,000 coins that it couldn’t back up.

Bithumb is also awaiting the outcome of another probe into its order book sharing with an overseas platform and more penalties could pose a hurdle to license renewals, according to the Korea Times.

“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,” an industry official told the Korea Times.

Related: South Korea moves to cap crypto exchange shareholder stakes at 20%: Report

South Korean crypto industry is rising

The crypto industry in South Korea has benefited from a friendlier environment after the election of President Lee Jae-myung in June last year, who has pushed forward with various crypto-related laws, including a bill to legalize stablecoins.

Three months earlier, crypto exchange users in South Korea surpassed 16 million, representing more than 30% of the country’s population.

The cryptocurrency market in South Korea is projected to reach $1.3 billion in revenue in 2026, according to online data platform Statista.

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