The post Bithumb Shuts Down USDT Market After Regulatory Probe appeared on BitcoinEthereumNews.com.

Bithumb, South Korea’s second-largest crypto exchange, is closing its USDT market and order-book-sharing with Australia’s Stellar Exchange after only two months, amid regulators’ scrutiny of anti-money laundering controls. The shutdown took effect at 11:00 AM on Friday, impacting 10 cryptocurrencies traded in the USDT market. Regulatory Investigation Triggers Closure The Korea Financial Intelligence Unit (FIU) began an on-site investigation at Bithumb on October 1, 2025. The probe focused on whether the exchange’s order-book sharing might create loopholes in anti-money laundering protocols. The FIU examined weaknesses in Know Your Customer procedures and Travel Rule compliance, particularly when collaborating with overseas exchanges that do not meet South Korea’s strict standards. Sponsored Sponsored The Travel Rule is a global requirement that forces Virtual Asset Service Providers to collect and share sender and recipient details for certain crypto transactions. South Korean regulators feared that Bithumb’s partnership with Stellar Exchange could allow users to circumvent these rules through cross-border trades. Industry sources say this investigation lasted much longer than usual. The extended review intensified operational pressure on Bithumb. Short-Lived Partnership With Stellar Exchange On September 22, 2025, Bithumb announced its USDT market beta, collaborating with Stellar Exchange to boost liquidity by sharing order books. This arrangement pooled trading volume, giving users deeper market access. But concerns arose quickly. During the partnership, it was revealed that BingX staff worked at Bithumb’s Seoul headquarters, raising questions about 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 rules from the Financial Services Commission on asset management, customer protection, and transaction monitoring. Authorities are concerned that cross-border partnerships with foreign firms on Korean soil may pose complex compliance challenges, particularly in anti-money laundering and KYC enforcement. Impact on Users and…

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Filed under: News - @ November 27, 2025 3:22 am