South Korea’s FIU Investigates Bithumb Over Order Book Sharing with Stellar: Liquidity or Legal Risk? (2025 Update)

• Why Is South Korea’s FIU Probing Bithumb?
• What Are the Risks of Order Book Sharing?
• Does Bithumb’s Deal with Stellar Comply with South Korean Law?
• How Is Bithumb Responding to the Probe?
• What Does This Mean for South Korea’s Crypto Market?
• Could This Impact Other Exchanges Like BTCC?
• What’s Next for Bithumb and Stellar?
• Final Thoughts: Balancing Innovation and Regulation
• Frequently Asked Questions

South Korea’s Financial Intelligence Unit (FIU) is scrutinizing Bithumb’s decision to share its order book with Australian platform Stellar, raising questions about cross-border compliance, liquidity benefits, and regulatory oversight. The probe highlights the tension between innovation and strict AML rules in one of the world’s most regulated crypto markets. Here’s what you need to know.

Why Is South Korea’s FIU Probing Bithumb?

South Korea’s Financial Intelligence Unit (FIU), operating under the Financial Services Commission, has launched an investigation into Bithumb—one of the country’s largest crypto exchanges—over its order book-sharing agreement with Stellar, an Australian trading platform. The FIU is examining whether this arrangement violates the Special Financial Transaction Information Act, which governs virtual asset brokering and enforces strict anti-money laundering (AML) and customer verification rules. On September 22, 2025, Bithumb announced the partnership, allowing stellar to display and match orders from its USDT market. But regulators aren’t convinced this move aligns with local laws.

What Are the Risks of Order Book Sharing?

Order book sharing, a common practice in crypto, lets exchanges display and match orders across platforms. Proponents argue it boosts liquidity and helps smaller exchanges compete. However, regulators worry about jurisdictional risks—connecting order flows across borders could allow unverified users or illicit transactions to slip through. South Korean authorities, in particular, are concerned about monitoring foreign users accessing domestic markets indirectly. "It’s a double-edged sword," says a BTCC analyst. "Liquidity improves, but so does regulatory complexity."

Does Bithumb’s Deal with Stellar Comply with South Korean Law?

The Special Financial Transaction Information Act requires foreign partners to meet strict criteria, including proof of licensing, customer verification, and data access for South Korean regulators. Sources suggest Bithumb’s arrangement with Stellar may fall short on several counts. Key sticking points include whether Bithumb verified Stellar’s licensing status and if it can guarantee customer identities. Another hurdle: sharing foreign user data with South Korean authorities, which clashes with privacy laws in other jurisdictions. "Even if Bithumb wants to comply, Stellar might not have the legal authority to share detailed customer info," notes a legal expert.

How Is Bithumb Responding to the Probe?

Bithumb insists it consulted financial authorities before partnering with Stellar and remains committed to compliance. However, regulators appear skeptical about the execution. The exchange’s ability to meet South Korea’s stringent requirements—especially around cross-border data sharing—remains unclear. If the FIU rules against Bithumb, it could set a precedent discouraging similar liquidity-sharing deals among South Korean exchanges.

What Does This Mean for South Korea’s Crypto Market?

Since the TerraUSD collapse in 2022, South Korea has doubled down on crypto regulation, demanding stronger AML protocols and tighter customer checks. This probe reinforces its reputation as one of the world’s most tightly controlled crypto markets. "Exchanges are walking a tightrope between innovation and compliance," says a local trader. The outcome could shape how global platforms collaborate with South Korean firms moving forward.

Could This Impact Other Exchanges Like BTCC?

While BTCC isn’t directly involved, the case underscores the challenges exchanges face when operating across jurisdictions. For platforms eyeing partnerships with South Korean firms, due diligence is now more critical than ever. "Regulators are watching every move," adds the BTCC analyst. "One misstep could trigger a domino effect."

What’s Next for Bithumb and Stellar?

As the FIU’s investigation continues, industry watchers are bracing for potential fines or operational restrictions. Bithumb’s fate hinges on whether it can prove its compliance efforts—or negotiate a compromise with regulators. Meanwhile, Stellar’s ability to navigate South Korea’s regulatory landscape could determine its future in the region.

Final Thoughts: Balancing Innovation and Regulation

This case highlights the growing pains of a globalized crypto market. While order book sharing offers clear benefits, regulatory harmonization remains a work in progress. For now, exchanges must tread carefully—especially in strict jurisdictions like South Korea. As one industry insider puts it, "Liquidity is great, but not at the cost of legal trouble."

Frequently Asked Questions

What is order book sharing?

Order book sharing allows exchanges to display and match buy/sell orders across platforms, improving liquidity but raising regulatory concerns.

Why is South Korea’s FIU investigating Bithumb?

The FIU is reviewing whether Bithumb’s partnership with Stellar complies with local AML and customer verification laws.

Could this probe affect other crypto exchanges?

Yes, a ruling against Bithumb may discourage similar cross-border liquidity arrangements in South Korea’s tightly regulated market.