Bithumb is moving ahead with a proposal to extend CEO Lee Jae-won’s term, with shareholders set to vote on the plan at a March 31 meeting. His current term ends later this month, and approval would keep him in the role for another two years. The renewal push comes as the exchange faces growing pressure from regulators, compliance issues, and questions tied to a recent operational mistake.
AML action has already led to penalties and transfer limits
South Korea’s Financial Intelligence Unit took action against Bithumb in March over alleged anti-money laundering failures. Regulators imposed a six-month partial suspension and a 36.8 billion won fine. Under the restriction, new customers cannot process external crypto transfers until late September. That limitation could weigh on user acquisition at a time when domestic competition remains intense.
Operational mistake raised fresh concerns over controls
The exchange also came under scrutiny after an error during a promotional campaign. In February, Bithumb mistakenly credited users with Bitcoin instead of Korean won, leading to a large distribution of digital assets that were not backed. The incident sharpened concerns over internal controls and oversight. It also added pressure ahead of the shareholder vote, where leadership accountability is likely to remain a central issue.
Order book sharing probe adds another compliance risk
Bithumb is also under investigation over allegations that it shared its order book with an overseas platform. The case could result in additional penalties depending on the outcome. This matters beyond any single enforcement action. The status of these probes may affect the exchange’s ability to renew its virtual asset service provider license, which remains necessary for operating in South Korea’s regulated crypto market.
Shareholders face a choice on continuity and trust
The company’s decision to push for Lee’s renewal suggests it wants leadership continuity during a period of regulatory strain. Some stakeholders may view management stability as useful while the exchange responds to investigations and restrictions. Others may see a leadership change as a cleaner path to restoring trust and tightening compliance standards. The vote will show which argument carries more weight.
Bithumb’s decision lands in a highly competitive market
Competition in South Korea’s crypto sector remains tough. Upbit leads by trading volume, while Bithumb holds the second spot and continues to compete with exchanges such as Korbit. The broader market is still expanding, with crypto adoption in the country already exceeding 16 million users. Projections cited in the report say the market could generate about $1.3 billion in revenue by 2026. Against that backdrop, Bithumb’s bid to keep its CEO is closely tied to how it handles compliance repair and defends its position in the market.