Today in crypto, Bithumb risks a partial business suspension for negligence around money laundering and customer verification practices, according to local media reports in South Korea. The former US Commodity Futures Trading Commission (CFTC) Chairman Chris Giancarlo said US banks are the ones most in need of crypto regulatory clarity, and Strategy’s Michael Saylor signaled his company is bought more BTC.
Bithumb faces possible six-month partial suspension in South Korea
Bithumb, South Korea’s second-largest cryptocurrency exchange by trading volume, is reportedly facing a possible partial business suspension of up to six months as regulators step up enforcement over anti-money laundering controls.
South Korea’s Financial Intelligence Unit (FIU) gave Bithumb a preliminary notice of a six-month partial suspension over alleged anti-money laundering and know-your-customer failures under the Act on Reporting and Using Specified Financial Transaction Information, according to local media reports on Monday. The regulator reportedly cited concerns over dealings with unregistered overseas virtual asset service providers and shortcomings in customer due diligence.
The FIU also issued a reprimand warning to Bithumb’s CEO, a warning considered a heavy penalty, which may lead to restrictions on his reappointment or future roles. Regulators are expected to hold a sanctions review later in March before deciding on any final measures. Bithumb told News1 that the action remains at the pre-notification stage and that the scope of any sanctions could still change.
“This measure is not yet a confirmed sanction, but is a pre-notification stage, and there may be some adjustments in the sanctions trial,” a Bithumb spokesperson said, adding that “restrictions only apply to the transfer (withdrawal) of virtual assets by new members.”
If finalized, the suspension would restrict new users from transferring digital assets off the platform, according to the report. Bithumb did not immediately respond to Cointelegraph’s request for comment.
Crypto regulatory clarity matters more for banks, ex-CFTC chief says
US banks are the ones most in need of crypto regulatory clarity, according to Chris Giancarlo, former chairman of the US Commodity Futures Trading Commission, who argues that they risk falling behind the rest of the world in payment innovation.
During an episode of Scott Melker’s The Wolf Of All Streets Podcast on Sunday, Giancarlo said the crypto industry will continue to build, even if the Senate’s crypto market structure bill doesn't pass. However, banks will be hesitant to invest in the technology without clear rules.
“The banks, however, can't afford regulatory uncertainty. Their general counsels are telling their boards, you can't invest billions of dollars in this… unless you've got regulatory certainty. The banks need this more than crypto,” he said.
“I think there's a recognition that this is the new architecture of finance and America, our financial institutions are the world's dominant financial institutions. We need to modernize that. We need to adopt this technology.”
Saylor signals another Bitcoin buy as Strategy’s treasury NAV dips to discount
Michael Saylor, the co-founder of Bitcoin (BTC) treasury company Strategy, indicated on Sunday that the firm is buying more BTC, as the price hovers near the $66,000 level.
“The Second Century Begins,” Saylor said on X, as he shared the Strategy BTC accumulation chart that has become synonymous with impending BTC purchases.
Strategy’s most recent BTC purchase occurred during the last week of February, when the company bought 3,015 BTC for more than $204 million, bringing its total holdings to 720,737 BTC, valued at about $48.1 billion using market prices at the time of publication.
The price of Bitcoin is currently below Strategy’s average purchase cost of about $75,985 per BTC, according to data from SaylorTracker.
