Bithumb Shuts Down USDT Market After Regulatory Probe
Bithumb is closing its USDT market and order-book sharing with Stellar Exchange due to a regulatory probe into its anti-money laundering controls.Summary
Bithumb, South Korea's second-largest crypto exchange, is shutting down its USDT market and its order-book sharing arrangement with Australia's Stellar Exchange just two months after launch. This action follows an on-site investigation by the Korea Financial Intelligence Unit (FIU) starting October 1, 2025, which scrutinized Bithumb's anti-money laundering (AML) protocols, particularly concerning Know Your Customer (KYC) procedures and Travel Rule compliance in its partnership with the foreign exchange.
The partnership with Stellar Exchange, a subsidiary of BingX, raised concerns that users could circumvent South Korea's strict regulations through cross-border trades. The investigation reportedly lasted longer than usual, increasing operational pressure on Bithumb. The closure, effective Friday at 11:00 AM, affects 10 cryptocurrencies traded in the USDT market, though they remain tradable in Korean Won.
While Bithumb officially cited system improvements for a more stable environment, industry observers believe the shutdown is a direct response to the FIU's concerns over AML controls. This event highlights the compliance challenges exchanges face when expanding internationally under strict regulatory oversight like South Korea's.
(Source：BeInCrypto)