Bithumb is moving to retain CEO Lee Jae-won as the South Korean crypto exchange faces regulatory pressure and fresh scrutiny over compliance controls. Shareholders are expected to vote on his reappointment at the company’s regular meeting on March 31.
Summary
- Bithumb seeks CEO Lee’s reappointment despite AML penalties and ongoing regulatory investigations in South Korea.
- Exchange faces transfer restrictions, fines, and scrutiny over a major Bitcoin promotion error.
- South Korea’s growing crypto market adds pressure as Bithumb prepares for license renewal.
Bithumb will reportedly ask shareholders to approve another two-year term for Lee Jae-won. His current term ends at the close of March. If shareholders approve the proposal, Lee will continue leading the exchange during a period of regulatory pressure.
The reported move comes as Bithumb remains the second-largest crypto exchange in South Korea by trading volume, per CoinGecko data. The company continues to hold a strong market position behind Upbit, while Korbit remains smaller by comparison.
Regulatory action adds pressure
Bithumb has recently faced action from South Korea’s Financial Intelligence Unit. In March, the regulator reportedly imposed a six-month partial suspension and a 36.8 billion won fine over alleged anti-money laundering failures.
Under the reported measures, new customers will not be allowed to make external crypto transfers from March 27 through Sept. 26. The case has added pressure on the exchange as it manages compliance and prepares for future licensing requirements.
Moreover, the exchange also drew attention in February after it reportedly credited users with 2,000 Bitcoin instead of 2,000 won during a promotional campaign. That error led to the distribution of 620,000 coins that the exchange could not support.
Bithumb is also waiting for the outcome of another probe linked to alleged order book sharing with an overseas platform. According to the Korea Times, an industry official said,
”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.”
South Korea’s crypto market keeps growing
The leadership decision comes as South Korea’s crypto market continues to expand. The sector has seen stronger policy support since President Lee Jae-myung took office and advanced crypto-related measures, including a bill tied to stablecoins.
Crypto ownership has also risen sharply in the country. Earlier data showed South Korean crypto exchange users had surpassed 16 million, equal to more than 30% of the population. Market estimates also project the country’s crypto sector could generate $1.3 billion in revenue in 2026.
