Woofun AI reports that South Korean exchange Bithumb was ordered to pay a $136,000 fine after the Personal Information Protection Commission (PIPC) confirmed the firm transferred user data overseas without separate consent. The regulator identified that between September and November 2025, Bithumb shared Tether (USDT) order books with BingX despite holding consent only for Stellar, while also distributing information to 13 other overseas exchanges.

The PIPC notice clarified that while data sharing is necessary for anti-money laundering during asset transfers, the exchange failed to strictly comply with the Protection Act regarding the data subject's right to self-determination. This violation occurred specifically during order book sharing and virtual asset transfer processes with foreign counterparts, bypassing required procedural safeguards.

Bithumb, one of the largest crypto platforms in the region, faces continuous regulatory pressure following a six-month activity suspension imposed in March for alleged Financial Information Act violations, a ruling later reversed by a court in April. Police raids on the company's offices earlier this month further intensified scrutiny as investigators probe alleged nepotism involving lawmaker Kim Byung-gi.

Woofun AI data shows the broader regulatory environment is tightening, with the Finance Ministry confirming a 22% tax on cryptocurrency gains will take effect in January 2027 after multiple delays from an initial 2025 target. This fiscal measure will impact approximately 16 million South Koreans who held digital assets as of March 2025, marking a significant shift in the nation's crypto taxation framework.

Concurrently, law enforcement capabilities are expanding as Chainalysis signed a memorandum of understanding with the Korean National Police Agency to enhance investigative resources against North Korea-linked crypto attacks. This strategic partnership underscores the government's prioritization of national security in the digital asset sector, positioning police at the forefront of these emerging threats.

The convergence of data privacy penalties, tax implementation, and enhanced police cooperation signals a comprehensive crackdown on compliance gaps within South Korea's cryptocurrency infrastructure.