Bithumb Faces FIU Probe Over Crypto Deal with Stellar

- FIU investigates Bithumb-Stellar partnership for cross-border compliance. - Inquiry focuses on potential AML and customer verification violations. South Korea’s Financial Intelligence Unit (FIU) is investigating cryptocurrency exchange Bithumb for potential violations of the Special Financial Transaction Information Act following its recent order book sharing agreement with the Australian exchange Stellar. On September 23, 2025, local media reported that the FIU is examining concerns about anti-money laundering (AML) compliance and Bithumb’s due diligence on Stellar’s regulatory status. On September 22, Bithumb announced its partnership with Stellar to enhance liquidity in its Tether (USDT) market. However, the FIU, which operates under South Korea’s Financial Services Commission, is scrutinizing whether the arrangement adhered to local regulations. Authorities are specifically assessing if Stellar’s licensing status and ability to share customer data with South Korean regulators align with the nation’s stringent requirements. Under South Korean law, local exchanges are prohibited from facilitating trades with foreign platforms unless the foreign partner fully complies with local AML laws. This compliance includes granting South Korean authorities access to transaction data upon request. Concerns have also emerged over potential conflicts between privacy and data protection laws across jurisdictions, which may challenge Stellar’s ability to share critical user information. As part of the investigation, the FIU summoned Bithumb’s CEO, Lee Jae-won, for questioning to evaluate the exchange’s compliance measures. In a statement, Bithumb noted that it consulted with financial regulators before finalizing the agreement with Stellar and reaffirmed its commitment to adhering to South Korean laws. Nonetheless, the FIU remains focused on determining whether these measures sufficiently addressed cross-border compliance risks. This inquiry arises amid heightened regulatory scrutiny in South Korea’s cryptocurrency industry, a shift catalyzed by the collapse of TerraUSD (UST) and increased efforts to prioritize market stability. The probe’s results could have wide-reaching implications for other domestic exchanges considering similar partnerships to boost liquidity. As of September 23, 17:09 UTC, Tether (USDT) is trading at $1.001, with a -0.01% change in 24-hour trading volume, according to market data from CoinMarketCap.