Bithumb Replaces Compliance Supervisor Ahead of FSS Inspection Bithumb, a major South Korean cryptocurrency exchange, has replaced its compliance supervisor ahead of an upcoming inspection by the Financial Supervisory Service (FSS). According to the Kookmin Ilbo, the former compliance supervisor resigned on the 20th, expressing personal reasons for his departure. The compliance supervisor plays a crucial role during FSS inspections, explaining the exchange's compliance status to financial authorities. Some industry insiders speculate that the former supervisor's resignation may be linked to allegations that he was involved in former Bithumb Holdings CEO Lee Sang-joon's alleged nominee stock ownership. Bithumb has strongly denied these allegations, stating that they are "completely untrue" and that the former supervisor had expressed his intention to resign prior to any knowledge of the allegations. An official said, "Vice President Choi expressed his intention to resign for personal reasons and had done so before the related allegations became known." The FSS inspection of Bithumb is expected to focus on the exchange's compliance with anti-money laundering and know-your-customer (KYC) regulations. A thorough review of the exchange's internal controls and risk management practices is also anticipated. The replacement of Bithumb's compliance supervisor ahead of the FSS inspection highlights the importance of strong compliance practices in the cryptocurrency industry. Exchanges must demonstrate their commitment to regulatory compliance to ensure the safety and integrity of their platforms.