Bithumb Shuts Down USDT Market After Regulatory Probe
Bithumb, South Korea’s second-largest crypto change, is closing its USDT market and order-book-sharing with Australia’s Stellar Exchange 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 Financial Intelligence Unit (FIU) started an on-site investigation at Bithumb on October 1, 2025. The probe targeted on whether or not the change’s order-book sharing would possibly create loopholes in anti-money laundering protocols. The FIU examined weaknesses in Know Your Customer procedures and Travel Rule compliance, notably when collaborating with abroad exchanges that don’t meet South Korea’s strict requirements.
The Travel Rule is a world requirement that forces Virtual Asset Service Providers to gather and share sender and recipient particulars for sure crypto transactions. South Korean regulators feared that Bithumb’s partnership with Stellar Exchange may enable customers to avoid these guidelines by means of cross-border trades.
Industry sources say this investigation lasted for much longer than regular. The prolonged assessment intensified operational strain on Bithumb.
Short-Lived Partnership With Stellar Exchange
On September 22, 2025, Bithumb introduced its USDT market beta, collaborating with Stellar Exchange to spice up liquidity by sharing order books. This association pooled buying and selling quantity, giving customers deeper market entry.
But issues arose shortly. During the partnership, it was revealed that BingX workers labored at Bithumb’s Seoul headquarters, elevating questions on oversight and regulatory scope. Stellar Exchange is a subsidiary of BingX, a Singapore-based platform.
South Korea enforces the Act on the Protection of Virtual Asset Users, with strict guidelines from the Financial Services Commission on asset administration, buyer safety, and transaction monitoring. Authorities are involved that cross-border partnerships with international corporations on Korean soil could pose advanced compliance challenges, notably in anti-money laundering and KYC enforcement.
Impact on Users and Industry Outlook
All excellent USDT market orders on Bithumb will probably be canceled at closure, and API companies associated to the market will probably be suspended. The 10 affected cryptocurrencies stay tradable in Korean Won. Deposit and withdrawal features are nonetheless accessible for customers.
In its official notice, Bithumb mentioned the closure aimed to supply a extra secure, superior buying and selling setting through system enhancements. The change acknowledged that updates about any reopening could be offered, with out giving a timeline.
However, observers view the shutdown as a direct response to regulatory calls for reasonably than as voluntary upgrades. Reports indicate that FIU issues over anti-money laundering controls drove the transfer.
This case exhibits the hurdles crypto exchanges face when increasing companies internationally in international locations with strict oversight. South Korea prioritizes investor safety and crime prevention, requiring strict compliance.
The publish Bithumb Shuts Down USDT Market After Regulatory Probe appeared first on BeInCrypto.
