Prices of cryptocurrencies, including bitcoin, are displayed at Bithumb Lounge in Gangnam District, Seoul, Tuesday. Yonhap
Bithumb’s license renewal is likely to face a prolonged delay after the cryptocurrency exchange mistakenly distributed 620,000 so-called “ghost” bitcoins, triggering regulatory scrutiny, according to financial authorities and industry officials Friday.
Under the Act on Reporting and Use of Certain Financial Transaction Information, virtual asset service providers are required to renew their registration every three years.
The country’s second-largest coin exchange has remained in provisional operating status since its license expired in December 2024. The firm applied for a renewal of its business registration in October 2024, and the review process is still underway.
Financial authorities had aimed to conclude Bithumb’s renewal review within the first half of this year. That timeline, however, has been thrown into doubt following the recent bitcoin misallocation incident.
On Feb. 6, the exchange attempted to distribute bitcoin worth 2,000 won ($1.40) to participating users as part of a promotional event, but an employee mistakenly entered 2,000 BTC, leading to the erroneous transfer of 620,000 bitcoins in total.
Following the unpredecented incident, the Financial Supervisory Service (FSS), the country’s financial watchdog — which had already conducted an on-site review of the exchange — announced a full-scale inspection, concluding that the case pointed to broader internal control weaknesses rather than a simple clerical mistake.
The Financial Intelligence Unit (FIU) under the Financial Services Commission (FSC), which has the final say over license approvals, has said it is premature to decide on the renewal while a inspection remains ongoing.
Still, officials acknowledge that existing law offers limited grounds for rejecting the application.
The statutory conditions for rejection are limited to specific circumstances, such as failure to obtain information security certification, failure to use real-name-verified bank accounts or convictions related to anti-money laundering or counterterrorism financing within the past five years.
Source: Korea Times News
