Bithumb Exchange to Retain CEO Despite Regulatory Challenges, 2026/03/23 15:20:56

The South Korean cryptocurrency exchange Bithumb plans to extend the tenure of CEO Lee Jae-won, despite pressure from regulatory authorities, as reported by Korea Times.

The exchange will hold its next shareholders’ meeting on March 31, where the proposal to extend Lee’s two-year term will be put to a vote — his current term is set to expire at the end of March, according to journalists. If shareholders approve Lee Jae-won’s reappointment, he will continue to lead the exchange, even amid ongoing investigations by regulators into the exchange’s operations.

Cryptocurrency exchanges in South Korea are not legally classified as financial institutions, allowing their executives to retain their positions despite comments from regulatory bodies. Under the Virtual Asset User Protection Act (VAUPA), which will take effect in the summer of 2024, exchanges must adhere to anti-money laundering (AML) regulations; however, the internal control standards required for banks and financial organizations do not apply to crypto platforms.

In March, the Financial Intelligence Unit of South Korea (FIU) restricted Bithumb’s operations for six months and imposed a fine of 36.8 million won (approximately $24.6 million), suspecting violations of AML regulations. From March 27 to September 26, new clients of the exchange are prohibited from conducting external cryptocurrency trading transactions.

In February, Bithumb attracted regulatory scrutiny when it mistakenly credited users with 2,000 bitcoins during a promotional campaign instead of the intended 2,000 stablecoins pegged to the South Korean won (around $1.4). Approximately 620,000 bitcoins were distributed as a result. The exchange later managed to reverse the cryptocurrency crediting; however, regulators expressed doubts about the effectiveness of Bithumb’s internal control system.