Core Insights - Bithumb, South Korea's second-largest crypto exchange, is shutting down its USDT market and order-book-sharing with Stellar Exchange due to regulatory scrutiny over anti-money laundering controls [1][2] Regulatory Investigation - The Korea Financial Intelligence Unit (FIU) initiated an on-site investigation at Bithumb on October 1, 2025, focusing on potential loopholes in anti-money laundering protocols related to order-book sharing [2][3] - The investigation examined weaknesses in Know Your Customer (KYC) procedures and compliance with the Travel Rule, particularly concerning partnerships with overseas exchanges [2][3] Partnership with Stellar Exchange - Bithumb announced its USDT market beta on September 22, 2025, in collaboration with Stellar Exchange to enhance liquidity through order book sharing [4] - Concerns arose regarding oversight when it was revealed that BingX staff were working at Bithumb's Seoul headquarters, raising questions about regulatory compliance [5] Compliance Challenges - South Korea enforces strict regulations under the Act on the Protection of Virtual Asset Users, which includes asset management, customer protection, and transaction monitoring [6] - Authorities are worried that cross-border partnerships may complicate compliance with anti-money laundering and KYC enforcement [6] Impact on Users - All outstanding USDT market orders on Bithumb will be canceled, and API services related to the market will be suspended, although the affected cryptocurrencies remain tradable in Korean Won [7] - Bithumb stated that the closure aims to provide a more stable trading environment through system improvements, with updates on any potential reopening to be communicated later [8]

CORRECT (Nov. 26, 10:10 UTC): Corrects headline, first paragraph to say the company is looking at the review findings. Also corrects that new customers' transactions are constrained. An earlier version of this story said Dunama was considering an appeal and onboarding new customers halted for three months.Dunama, the operator of South Korea's largest crypto exchange, said it is assessing the findings of a review by the intelligence unit of South Korea's financial watchdog after being hit by a 35.2 billion-w ...

Regulatory Landscape - Europe is implementing stricter financial regulations, potentially impacting financial privacy [1] - Cash transactions exceeding €10,000 will be illegal across the Eurozone in 847 days [1] - The EU Anti-Money Laundering package (AMLA) treats all 340 million Europeans like suspects [1] Market Perception - The new regulations are perceived as treating all Europeans as potential criminals [1] - The regulations are seen as a threat to financial privacy [1]

Core Points - The Central Bank of Ireland (CBI) fined Coinbase Europe Limited €21.46 million for significant anti-money-laundering (AML) and counter-terrorist-financing (CTF) monitoring failures [1][5] - This fine represents the first enforcement action against a crypto company in Ireland, indicating increasing regulatory scrutiny on digital asset exchanges [1][5] Regulatory Findings - CBI found that Coinbase failed to monitor over 30 million transactions valued at €176 billion from April 2021 to March 2025, with system faults affecting approximately 31% of all transactions during this period [2][3] - The lapse in monitoring delayed the identification of suspicious activities related to money laundering, fraud, ransomware, drug trafficking, and child exploitation [3][4] Compliance Issues - Deputy Governor Colm Kincaid highlighted that system failures can provide opportunities for criminals to evade detection, stressing the need for stronger oversight due to the cross-border nature and anonymity features of crypto [4] - Coinbase's system misconfiguration was not a deliberate attempt to bypass the law, but operational failures are still treated seriously under AML laws [4][5] Settlement and Impact - The initial proposed fine was €30.66 million, which was reduced by 30% due to Ireland's "undisputed facts settlement" process [5] - The penalty is pending confirmation by Ireland's High Court before it takes effect [5] User Concerns - The enforcement action does not impact wallet balances, trading access, or funds held on the exchange for everyday Coinbase users, as the issue pertains to internal monitoring systems [6] - However, this case raises concerns about Coinbase's compliance infrastructure as it seeks greater regulatory legitimacy [6] Business Developments - Coinbase is applying for a US National Trust Charter to expand its custody and institutional services, with regulators likely to investigate potential weaknesses in other jurisdictions [7] - The fine comes during a transformative period for Coinbase, which recently acquired Echo for $375 million to enhance its tokenized asset issuance capabilities [9]

Regulatory Compliance & Security - OKX handled over 34,000 law enforcement requests across 110 jurisdictions in 2024 [1] - These efforts helped uncover a $250 million laundering ring [1] - Millions were recovered for victims through these actions [1] Market Positioning - OKX aims to maintain stability during crypto market volatility [1] Leadership Perspective - Linda Lacewell, OKX's CLO, provides further insights (link provided) [1]

Core Insights - France is conducting anti-money laundering inspections on multiple crypto exchanges, including Binance and Coinhouse, as part of the process to determine which entities will receive EU-wide operating permits under the Markets in Crypto-Assets (MiCA) regulation [1][2] - The French prudential supervision authority, ACPR, has been performing on-site controls since late 2024, with specific instructions for Binance to enhance its risk controls during the examination [1][2] - Companies have until June 2026 to secure their licenses, with only a few entities, including Deblock, GOin, Bitstack, and CACEIS, having received approval so far [3] Regulatory Context - The inspections are part of a broader effort by France, Austria, and Italy to urge the EU's top markets watchdog to directly supervise major crypto companies and tighten regulations due to identified disparities in implementation across the EU [3] - Compliance checks verify adherence to conditions for PSAN registration, focusing on anti-money laundering and counter-terrorist financing controls [2] Binance's Operational Adjustments - Following a restructuring in May 2024, Binance replaced co-founder Changpeng Zhao with new shareholders to comply with French regulations that prohibit majority shareholders with criminal records [4][5] - The restructuring is part of a global project aimed at aligning with regulatory standards, as MiCA allows companies to operate across EU countries [5] Compliance Requirements - Typical demands from ACPR after inspections include hiring additional compliance staff and enhancing IT security systems, with companies given several months to comply [6] - Information collected by ACPR is shared with France's Financial Markets Authority (AMF), which is responsible for granting MiCA agreements [6]

Core Insights - Stewart Information Services Corporation has launched FINCEN Reporting Services (FRS) in response to the new Anti-Money Laundering Rule from FinCEN, which has delayed reporting requirements until March 1, 2026 [1] Company Summary - The FRS solution aims to alleviate pressure on title and closing customers by collecting data, validating reportability, communicating with buyers and sellers, electronically filing required FinCEN reports, and retaining necessary documentation [1]

Crypto Exchange KuCoin Hit With Record Anti-Money Laundering Penalty in Canada► https://t.co/o3i8jaEidz https://t.co/o3i8jaEidz ...

🚨JUST IN: CANADIAN POLICE SEIZES $40M IN CRYPTO FROM TRADEOGRE IN RECORD ANTI-MONEY LAUNDERING BUST ...

Regulatory Landscape - UK regulators are drafting new Anti-Money Laundering (AML) rules for crypto firms [1] Cryptocurrency - The new rules specifically target crypto firms operating in the UK [1]