Regulatory Investigation Triggered the Closure

The Financial Intelligence Unit (FIU) of Korea conducted an on-site inspection of Bithumb on October 1. The investigation focused on whether order book sharing could create gaps in anti-money laundering (AML) and KYC compliance. Violations of the Travel Rule and partnerships with foreign exchanges were identified as particularly risky. Consequently, Bithumb’s short-term partnership with Stellar Exchange intensified regulatory scrutiny, leading to the USDT market suspension decision.

Impact on Users and the Market

All pending orders in the USDT market will be canceled, and API services will be suspended. However, users can continue trading other cryptocurrencies in KRW. Bithumb announced that updates regarding the market reopening will be provided in the future, though no timeline was shared. This situation highlights the delicate balance between international partnerships and regulatory compliance.

Official Statement from Bithumb

Lee Jae-won, CEO of Bithumb, stated:

“Due to system maintenance and legal requirements, we will temporarily suspend our Tether (USDT) market service at 11:00 KST on November 28, 2025. This service is currently in beta and includes order book sharing with Stellar. We are restructuring the service to provide a more stable and advanced trading environment. Updates regarding the reopening schedule will be provided separately.”

Short-Lived Partnership with Stellar Exchange

On September 22, 2025, Bithumb launched a short-term collaboration with Stellar Exchange to enhance liquidity in the USDT market and offer users deeper market access. However, the partnership quickly raised concerns. During this time, employees from BingX were found working at Bithumb’s Seoul office, raising questions about oversight and regulatory compliance. Stellar Exchange is a subsidiary of Singapore-based BingX.

Similar Actions by Other Exchanges

As you may know, Binance TR recently took a similar step by delisting certain USDT trading pairs. This move reflects increasing regulatory pressure and local compliance requirements on stablecoin-based markets.

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