News linked to both this project and an event.
According to The Block, South Korean cryptocurrency exchange Bithumb announced it has signed a memorandum of understanding (MOU) with SSI Digital (SSID), the blockchain subsidiary of Vietnam’s largest securities firm, SSI. Under the MOU, the two parties will jointly establish and operate a digital asset exchange in Vietnam, covering areas including wallet and custody systems, security risk management, regulatory compliance, and product development. The agreement was signed in March this year and officially announced today. Bithumb stated that, subject to approval by local regulatory authorities, it may make a strategic investment in SSID’s cryptocurrency exchange project.
: South Korea's crypto industry has expressed strong concerns over proposed amendments to anti-money laundering (AML) regulations, arguing that the rules could impose excessive compliance burdens on Virtual Asset Service Providers (VASPs).According to Yonhap News Agency, the Digital Asset eXchange Alliance (DAXA), representing 27 VASPs including Upbit, Bithumb, Coinone, Korbit, and Gopax, submitted comments opposing the classification of all overseas virtual asset transfers exceeding 10 million won (approximately $6,800) as suspicious transaction reports.DAXA warned that this rule could cause the number of suspicious transaction reports from South Korea's top five exchanges to skyrocket from approximately 63,000 last year to over 5.4 million—an increase of about 85 times—severely impacting the efficiency of actual compliance execution. Furthermore, the industry also opposes a new obligation requiring exchanges to verify the accuracy of customer information, arguing it exceeds the scope of current legal authorization.South Korea's Financial Services Commission (FSC) and Financial Intelligence Unit (FIU) proposed the relevant amendments on March 30, which have now entered a public comment period, with final deliberation expected to be completed in July.Meanwhile, legal disputes between Korean exchanges and regulators over AML penalties continue. Multiple platforms are challenging previous business restrictions and fines through the courts, reflecting an escalating tension between regulatory tightening and the industry's execution capabilities. (Cointelegraph)
According to Yonhap News Agency, the Korea Digital Asset Exchange Alliance (DAXA) submitted its official comments on the draft Enforcement Decree of the Act on Reporting and Using Specified Financial Transaction Information (“Special Financial Information Act”) to the National Participation Legislative Center of the Ministry of Government Legislation on April 29. The comments reflect the collective views of 27 Virtual Asset Service Providers (VASPs), including the five major exchanges Upbit and Bithumb. DAXA raised objections to two core provisions in the draft revision: First, the proposal to categorize all virtual asset transactions exceeding KRW 10 million as suspicious transactions—mandating compulsory reporting to the Financial Intelligence Unit (FIU). This change is projected to increase the annual number of suspicious transaction reports filed by the five major exchanges from 63,000 to 5.445 million, an 85-fold surge. Second, the draft introduces a new obligation to verify the accuracy of customer information, going beyond existing customer identification requirements—and exceeding the scope of authority granted under the higher-level law. Moreover, penalties for noncompliance are significantly harsher than those applied to other financial sectors. While DAXA supports the legislative intent behind the revision—to strengthen the anti-money laundering (AML) framework—it contends that certain provisions overstep the statutory delegation of authority and impose discriminatory treatment on the virtual asset industry. The draft revision’s public consultation period ends on May 11, with formal adoption expected in July. The relevant provisions will be implemented in phases between August 2026 and 2027.
According to an official announcement, Upbit and Bithumb have stated that member companies of the Korea Digital Asset Exchange Association (DAXA) plan to terminate trading support for DRIFT. The reason for terminating DRIFT trading is that the foundation’s explanatory materials alone are insufficient to alleviate concerns that led to the project’s inclusion on the “Trading Caution List.” Furthermore, after a comprehensive review of all aspects related to the project’s progress, it was determined that the project fails to meet the criteria required to maintain trading support. DRIFT trading (buy/sell) will end on June 1, 2026, at 16:00 KST. Support for DRIFT withdrawals will be terminated on July 1, 2026, at 16:00 KST.
According to SBS Biz, South Korea’s Personal Information Protection Commission has completed on-site inspections of Upbit and Bithumb and is now reviewing whether the two exchanges violated regulations by transmitting users’ personal information when sharing order books with overseas platforms. Results are expected to be announced in the second half of the year. The core of the dispute lies in whether personally identifiable information was transmitted alongside order books during the sharing process. South Korea’s Personal Information Protection Act stipulates that cross-border transfers of personal information require prior user consent; violations may trigger sanctions. Currently, Upbit shares its order book with Upbit APAC and Tether’s markets, while Bithumb previously shared its order book with the Australian exchange Stellar. Meanwhile, Bithumb is also engaged in a legal battle with financial regulators over alleged violations of the Act on Special Cases Concerning the Settlement of Financial Transactions. A court ruling on the validity of certain business suspension orders against Bithumb is imminent.
According to Yonhap News, the Seoul Administrative Court’s Administrative Division No. 2 ruled on April 30 to accept Bithumb’s application to suspend enforcement of a partial business suspension order issued against it by South Korea’s Financial Intelligence Unit (FIU). The effect of this partial suspension order will thus be stayed until the court issues its final judgment in this case. Previously, in March this year, the FIU imposed a severe penalty on Bithumb—six months of partial business suspension and a fine of KRW 36.8 billion—citing 6.65 million violations by Bithumb of obligations stipulated under South Korea’s Act on Reporting and Using Specified Financial Transaction Information (“Special Financial Information Act”). The suspended operations specifically involve external virtual asset transfers (i.e., deposits and withdrawals) for new customers. This marks the harshest penalty ever levied against a Korean won-based cryptocurrency exchange operating in South Korea. The penalty was originally scheduled to take effect on March 27. However, Bithumb filed an administrative lawsuit on March 23 and simultaneously applied for a stay of enforcement, thereby temporarily halting the penalty’s effect. The court’s formal acceptance of the application means that the sanctions will remain suspended until the final ruling is rendered in this case.
Circle CEO Jeremy Allaire stated that Circle has expanded its collaboration with Dunamu—the operator of Upbit—to support the compliant adoption of digital assets, and broadened its partnership with Bithumb to strengthen stablecoin infrastructure and raise market awareness of stablecoins. Allaire noted that South Korea is rapidly advancing regulation for stablecoins and digital assets, and that local cryptocurrency adoption rates are high. During his time in Seoul, he also met with representatives from KakaoGroup, Coinone, Hashed, Shinhan Bank, KB Financial Group, and Woori Bank.
According to News1, following the erroneous payment incident at Bithumb, the Bank of Korea stated that it is necessary to prudently consider introducing a “circuit breaker” mechanism—similar to those in traditional financial markets—into the cryptocurrency market to address extreme market volatility and systemic risks. The Bank of Korea noted that as the cryptocurrency market expands and associated risks increase, existing regulatory measures are insufficient to fully cover potential issues; therefore, it is essential to study the introduction of an automated trading suspension mechanism to enhance market stability and investor protection. Previously, Bithumb triggered market attention after a system failure led to abnormal payments affecting some users’ assets.
Decentralized GPU cloud computing infrastructure platform Aethir confirmed that its Ethereum-related bridge contract was attacked. The team promptly disconnected the affected contract and, in collaboration with major exchanges, blacklisted the hacker’s wallet, limiting losses to under $90,000. Earlier, blockchain security firm PeckShield estimated losses at $400,000. The attacker exploited Aethir’s cross-chain smart contract, AethirOFTAdapter, to transfer stolen funds from BNB Chain to Tron. Aethir stated that its Ethereum mainnet ATH token supply remains unaffected. It plans to release a detailed compensation plan and incident analysis next week and will collaborate with exchanges including Binance, Upbit, and Bithumb to freeze funds. Web3 security platform ZeroShadow is assisting with the investigation. In 2025, Aethir achieved $127.8 million in revenue and deployed over 440,000 GPU containers globally.