Bithumb, South Korea’s second-largest crypto trade, is closing its USDT market and order-book-sharing with Australia’s Stellar Trade after solely two months, amid regulators’ scrutiny of anti-money laundering controls.
The shutdown took impact at 11:00 AM on Friday, impacting 10 cryptocurrencies traded within the USDT market.
Regulatory Investigation Triggers Closure
The Korea Monetary Intelligence Unit (FIU) started an on-site investigation at Bithumb on October 1, 2025. The probe centered on whether or not the trade’s order-book sharing may create loopholes in anti-money laundering protocols. The FIU examined weaknesses in Know Your Buyer procedures and Journey Rule compliance, significantly when collaborating with abroad exchanges that don’t meet South Korea’s strict requirements.
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The Journey Rule is a worldwide requirement that forces Digital Asset Service Suppliers to gather and share sender and recipient particulars for sure crypto transactions. South Korean regulators feared that Bithumb’s partnership with Stellar Trade may enable customers to bypass these guidelines by way of cross-border trades.
Trade sources say this investigation lasted for much longer than ordinary. The prolonged evaluate intensified operational stress on Bithumb.
Quick-Lived Partnership With Stellar Trade
On September 22, 2025, Bithumb introduced its USDT market beta, collaborating with Stellar Trade to spice up liquidity by sharing order books. This association pooled buying and selling quantity, giving customers deeper market entry.
However considerations arose shortly. In the course of the partnership, it was revealed that BingX workers labored at Bithumb’s Seoul headquarters, elevating questions on oversight and regulatory scope. Stellar Trade is a subsidiary of BingX, a Singapore-based platform.
South Korea enforces the Act on the Safety of Digital Asset Customers, with strict guidelines from the Monetary Companies Fee on asset administration, buyer safety, and transaction monitoring. Authorities are involved that cross-border partnerships with overseas corporations on Korean soil could pose complicated compliance challenges, significantly in anti-money laundering and KYC enforcement.
Influence on Customers and Trade Outlook
All excellent USDT market orders on Bithumb can be canceled at closure, and API companies associated to the market can be suspended. The ten affected cryptocurrencies stay tradable in Korean Gained. Deposit and withdrawal capabilities are nonetheless out there for customers.
In its official discover, Bithumb mentioned the closure aimed to supply a extra secure, superior buying and selling surroundings through system enhancements. The trade said that updates about any reopening could be supplied, with out giving a timeline.
Nonetheless, observers view the shutdown as a direct response to regulatory calls for relatively than as voluntary upgrades. Stories point out that FIU considerations over anti-money laundering controls drove the transfer.
This case exhibits the hurdles crypto exchanges face when increasing companies internationally in nations with strict oversight. South Korea prioritizes investor safety and crime prevention, requiring strict compliance.