South Korea FIU Probes Bithumb’s Orderbook Compliance with Stellar Exchange

South Korea's Financial Intelligence Unit is investigating whether Bithumb’s orderbook-sharing agreement with Stellar complies with national laws on licensing, AML, and customer verification.

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Summary

South Korea’s Financial Intelligence Unit is investigating Bithumb’s compliance in its shared orderbook arrangement with Australia’s Stellar exchange. The probe focuses on adherence to licensing, registration, anti-money laundering requirements, and counterparties’ customer verification as mandated by the Act on Reporting and Use of Certain Financial Transaction Information. Authorities state current procedures remain insufficient, and if violations are confirmed, remedial actions will be enforced.

Terms & Concepts
  • Shared Orderbook: A trading system setup where multiple exchanges share the same orderbook, allowing users on different platforms to access identical liquidity.
  • Anti-Money Laundering (AML): A set of laws and procedures designed to prevent criminals from disguising illicit funds as legitimate income.
  • Act on Reporting and Use of Certain Financial Transaction Information: South Korea’s law requiring financial and virtual asset service providers to register, report transactions, and comply with customer verification and AML obligations.