Bithumb, South Korea’s second-largest cryptocurrency exchange by trading volume, is reportedly moving to reappoint its chief executive at an upcoming shareholders’ meeting, even as the platform faces mounting regulatory pressure. According to the Korea Times, a proposal to renew the term of CEO Lee Jae-won will be put to shareholders at the exchange’s regular annual meeting on March 31. His current term expires at the end of the month, and a successful vote would extend his tenure by two years. Cointelegraph has reached out to Bithumb for comment.
The reappointment bid comes at a difficult time for the exchange, which has recently faced significant regulatory action. South Korea’s Financial Intelligence Unit reportedly issued Bithumb a six-month partial suspension alongside a fine of 36.8 billion won, equivalent to approximately $24.2 million, over alleged anti-money laundering failures. As part of the suspension measures, the exchange is barred from processing external crypto transfers for new customers between March 27 and September 26.
Bithumb also attracted regulatory attention in February following a promotional event mishap in which the platform mistakenly credited 2,000 Bitcoin per user rather than the intended 2,000 Korean won, worth roughly $1.40. The error resulted in a total of 620,000 coins being distributed, an amount the exchange was unable to back up. The incident added to a growing list of compliance concerns surrounding the platform.
Further complications loom for the exchange, as it awaits the outcome of a separate investigation into its order book sharing arrangement with an overseas platform. The Korea Times notes that additional penalties stemming from that probe could create obstacles for the renewal of Bithumb’s operating license. An industry official quoted by the publication warned that the company faces an uncertain period ahead as regulatory reviews continue.
“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,” the official told the Korea Times. The exchange currently ranks second in South Korea by 24-hour trading volume, behind market leader Upbit and ahead of Korbit, according to data from CoinGecko. The outcome of the various investigations is expected to weigh heavily on the company’s near-term operations.
Despite the challenges facing individual platforms, the broader South Korean crypto market has been operating in a more favorable regulatory climate. Following the election of President Lee Jae-myung in June of last year, the government has advanced several crypto-related legislative measures, including a bill aimed at legalizing stablecoins. The number of crypto exchange users in the country surpassed 16 million three months before his election, representing more than 30% of the national population.
The cryptocurrency market in South Korea is projected to generate $1.3 billion in revenue in 2026, according to online data platform Statista. That growth trajectory underscores the strategic importance of regulatory compliance and license stability for exchanges like Bithumb operating in the market. How the company navigates its current legal and regulatory challenges is likely to shape its competitive position in the months ahead.
Originally reported by CoinTelegraph.
