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BitHump, South Korea’s second largest cryptocurrency exchange, is shutting down its USDT market and order book sharing with Australian exchange Stellar after just two months, amid regulators’ scrutiny of its anti-money laundering controls.
The shutdown took effect at 11 am on Friday, affecting 10 cryptocurrencies traded on the USDT market.
Regulatory investigation leads to closure
The Korean Financial Intelligence Unit (FIU) began a field investigation into BitHub on October 1, 2025. The investigation focused on whether the sharing of the order book could create vulnerabilities in anti-money laundering protocols. FIU examined the weaknesses in your client’s knowledge processes and compliance with the Travel Rule In particular When cooperating with overseas exchanges that do not meet the strict standards of South Korea.
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The Travel Rule is a global requirement that forces virtual asset service providers to collect and share details of senders and receivers of transactions. Encryption Sure. South Korean regulators feared that BitHump’s cooperation with the Stellar exchange would allow users to circumvent these rules through cross-border trades.
This investigation took longer than usual, industry sources said. The lengthy review has placed increased operational pressure on BitHub.
Short term partnership with Stellar trading platform
On September 22, 2025, BitHump announced a test of the USDT market in collaboration with the Stellar exchange to increase liquidity by sharing order books. These arrangements provided a combined trading volume, allowing users to access a deeper market.
But concerns quickly emerged. During the collaboration, it was revealed that BingX employees work at BitHub’s headquarters in Seoul, raising questions about oversight and the scope of regulation. Stellar is a subsidiary of BingX, a platform based in Singapore.
South Korea is implementing a Virtual Asset User Protection Act, with strict regulations from the Financial Services Commission on asset management, customer protection and…Transaction monitoring. Officials are concerned that cross-border partnerships with foreign companies on Korean soil can pose complex compliance challenges, particularly in anti-money laundering applications and know-your-customer procedures.
Impact on users and industry perspectives
All pending USDT market orders on BitHub will be canceled at the end, and API services related to the market will be suspended. The 10 affected cryptocurrencies remain trading in Korean wine. Deposit and withdrawal functions are always available to users.
in Official notice On its own, BitHump said that the closure aims to provide a more stable and advanced trading environment through system improvements. He said updates on any reopening would be provided without specifying a timetable.
However, observers see the closure as a direct response to regulatory requirements and not simply as voluntary improvements. Reports indicate However, FIU’s concerns about anti-money laundering controls prompted the move.
This case shows the obstacles that crypto exchanges face when expanding services internationally in countries with strict regulations. South Korea prioritizes investor protection and crime prevention, which requires strict compliance.
