South Korea fined Bithumb over unauthorized overseas user data transfers without consent. Regulators found customer information reached BingX despite consent naming Stellar exchange. New bloc
South Korean authorities have fined cryptocurrency exchange Bithumb 210 million Korean won, or about $136,000, for transferring users’ personal information overseas without proper consent. According to the report, regulators said Bithumb violated privacy rules during cross-border cryptocurrency transactions and ordered the exchange to strengthen its data protection procedures.
The penalty follows an investigation by the Personal Information Protection Commission into Bithumb’s handling of customer information between September and November 2025. Authorities found that the exchange failed to comply with legal requirements governing overseas transfers of personal data.
According to the commission, the violations involved customer information linked to Tether’s USDT market transactions. Officials said protecting user privacy remains a legal obligation for every cryptocurrency platform operating in South Korea.
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According to the Personal Information Protection Commission, Bithumb obtained customer consent to transfer information to Stellar exchange. However, investigators found that the information was actually transmitted to a platform operated by BingX.
Regulators concluded that the exchange did not accurately inform users about the final destination of their personal information. Consequently, the commission determined that the transfers breached South Korea’s Personal Information Protection Act.
Additionally, investigators discovered another compliance failure involving transfers with 13 overseas cryptocurrency exchanges. Bithumb shared customer names, wallet addresses, and birth dates without obtaining complete consent required under national privacy regulations.
Besides imposing the financial penalty, the commission ordered Bithumb to revise its internal procedures for overseas data transfers. Authorities said exchanges must clearly explain where customer information will be processed before any transfer occurs.
The enforcement action also coincided with the release of new privacy guidance for blockchain companies. The commission designed the framework to address privacy challenges created by blockchain technology. According to the regulator, blockchain companies should avoid recording personally identifiable information on public ledgers. Information such as names and national identification numbers should remain off-chain whenever possible.
Moreover, the guidance encourages firms to introduce stronger safeguards before transferring customer information across international platforms. Officials believe these measures will improve compliance while supporting responsible blockchain innovation. South Korea has steadily expanded oversight of cryptocurrency businesses beyond financial compliance. Privacy protection now represents a key part of regulatory expectations for digital asset service providers.
The latest decision signals that exchanges operating internationally must strengthen their governance frameworks. Regulators have indicated that incomplete user consent will attract stricter enforcement actions as the industry continues to evolve.
In conclusion, Bithumb’s penalty reinforces South Korea’s commitment to stronger data protection standards within the cryptocurrency industry. The case also establishes clearer expectations for exchanges handling customer information across international borders.
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