Bithumb's Data Transfer Fine
South Korea Fines Bithumb 210 Million Won for Illegal Overseas Data Transfers
Key Points
The investigation was triggered by a National Assembly audit last year that questioned the legality of Bithumb's order book sharing service, prompting the privacy regulator to open a formal probe.
The data transfer involved Bithumb's USDT order book; users were told data would go to a Stellar exchange, but records show the information was actually sent to a system operated by bingx.com.
Privacy guidelines for blockchain services released by the PIPC outline measures to prevent on-chain personal-data disclosure, address information sharing among decentralised participants, and determine how to dispose of personal data in light of blockchain immutability.
The corrective order requires Bithumb to obtain separate consent for overseas transfers and to clearly disclose the facts and related information in its privacy policy.
South Korea's privacy regulator fined crypto exchange Bithumb 210 million won ($135,700) for illegally transferring users' personal data overseas, Korea Herald reported. The Personal Information Protection Commission (PIPC) announced the penalty on June 25 after finding that Bithumb shared sensitive user details with foreign exchanges without proper consent.
The regulator also issued a corrective order and released the country's first privacy guidelines for blockchain services — a sign that South Korea is tightening its grip on how crypto platforms handle data across borders, according to Crypto Briefing.
Bithumb Told Users One Thing, Did Another
The core problem: Bithumb said it was sending USDT order-book data to an Australian exchange called Stellar. But the PIPC found the data actually went to a system run by BingX.com, according to Korea Herald. This mismatch — between what users were told and what actually happened — is what triggered the fine.
The illegal transfers happened between September and November 2025. Bithumb launched its USDT market on September 22, 2025, and agreed to share order books with Stellar for liquidity. On November 28, under regulatory pressure, Bithumb quietly shut the service down — officially calling it "system maintenance," Crypto Briefing reported.
Travel Rule Data Sent to 13 Exchanges Without Consent
The violations went beyond the order-book issue. Bithumb also sent personal details — names, wallet addresses, and birth dates — to 13 overseas exchanges. The exchange shared this data to comply with anti-money laundering (AML) rules, which require platforms to verify who is sending and receiving crypto.
The problem is South Korea's Personal Information Protection Act (PIPA) requires separate, explicit consent before sending personal data abroad. Bithumb skipped that step, Korea Herald reported. The PIPC acknowledged AML data sharing is a legal necessity, but said following proper privacy procedures is not optional — even for financial security reasons.
A Probe Sparked by Parliament, Piling on Top of Bigger Fines
The investigation didn't start at the PIPC. A National Assembly audit in late 2024 first raised red flags about the legality of Bithumb's order-book sharing. That prompted the PIPC to open a formal probe. The Financial Intelligence Unit (FIU) also got involved, fining Bithumb a far larger 36.8 billion won ($24.6 million) in March 2026 for over 6 million AML and KYC violations, according to Crypto Briefing.
The 210 million won data fine is smaller by comparison, but it comes with a corrective order. Bithumb must now get separate consent for overseas data transfers and clearly spell out what data goes where in its privacy policy, Korea Herald reported.
New Blockchain Privacy Rules Signal Bigger Stakes Ahead
Alongside the fine, the PIPC released its first-ever privacy guidelines for blockchain services. The rules tackle three hard problems: stopping personal data from appearing on public blockchains, managing data shared among decentralized users, and handling deletion requests on a system where data can't easily be erased, according to Korea Herald.
The stakes are about to get much higher. Starting September 2026, amendments to PIPA will let the PIPC fine companies up to 10% of total revenue for serious violations, Crypto Briefing reported. For a large exchange like Bithumb, that could mean fines in the hundreds of billions of won — a dramatic jump from the current penalty.
Sentiment
Mostly NegativePublishers
15
Articles
4
Reach
19
