Bithumb fined: South Korean regulator penalizes for transferring user data without consent
South Korea's Personal Information Protection Commission (PIPC) has fined cryptocurrency exchange Bithumb 210 million won — approximately $136,000. The penalty was imposed for illegally transferring users' personal data to foreign companies without proper consent. The violations occurred between September and November 2025, when the exchange transmitted order book information for USDT trading pairs.
How Bithumb Deceived Its Clients
An investigation revealed that Bithumb obtained user consent to transfer data to the Stellar platform, but instead sent the data to another exchange operated by BingX. This constitutes a direct violation of client trust and the law. Furthermore, the regulator identified similar issues in transfers to 13 other foreign exchanges: the exchange transmitted names, dates of birth, and wallet addresses without obtaining full user consent for such actions.
Recommendations for the Blockchain Industry
The PIPC demanded that Bithumb immediately rectify its data transfer protocols. The authority emphasized that cross-border transfers of personal information require strict compliance with the law and protection of data subjects' rights. Concurrently, the regulator issued guidelines for blockchain companies, taking into account the technology's specific features: transparency and the immutability of records. The document recommends not placing personally identifiable information, such as names or social security numbers, on-chain.
My Professional Perspective
This case is a stark example of how even major market players neglect privacy in favor of operational efficiency. A $136,000 fine for Bithumb is little more than a symbolic gesture, given the scale of its business. However, such regulatory measures, especially in South Korea, set a precedent that will force the entire industry to reconsider its approach to data protection. Otherwise, we risk seeing harsher sanctions, as has already happened with tech giant Coupang, which was fined a record 624.6 billion won.