The South Korean cryptocurrency exchange Bithumb has been making strategic moves to expand its global footprint, particularly targeting Japan and Thailand as key markets for growth. Despite facing security setbacks and regulatory scrutiny, Bithumb continues to position itself as a major player in the Asian digital asset landscape.
This article explores Bithumb’s international expansion plans, recent operational challenges, and the broader implications for cryptocurrency adoption in regulated Asian markets.
Bithumb’s Strategic Move Into Japan and Thailand
In mid-2018, Bithumb announced plans to establish a presence in both Japan and Thailand, two countries with growing interest in blockchain technology and digital currencies. According to reports from local media outlets such as ZDNet Korea, the exchange was actively seeking approval from Japan’s Financial Services Agency (FSA) and Thailand’s Securities and Exchange Commission (SEC).
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Japan has long been regarded as one of the most crypto-friendly nations in Asia, with a well-defined regulatory framework that encourages innovation while ensuring investor protection. By pursuing licensing under the FSA, Bithumb aims to tap into Japan’s mature and security-conscious crypto market.
Meanwhile, Thailand has also taken progressive steps toward regulating digital assets. The establishment of Bithumb (Thailand) Company Limited, with an initial capital of approximately $90,000, signals a formal commitment to compliance and localized operations. This subsidiary is expected to offer tailored trading services that align with local laws and user preferences.
These expansions reflect a broader trend among South Korean exchanges seeking international diversification amid tightening domestic regulations.
Regulatory Environment and Market Opportunities
South Korea has played a pivotal role in shaping cryptocurrency trading dynamics across Asia. However, increasing government oversight—especially around anti-money laundering (AML) and know-your-customer (KYC) requirements—has prompted exchanges like Bithumb to look beyond national borders.
Japan’s regulatory clarity gives it an edge. Licensed exchanges must adhere to strict cybersecurity standards, asset custody rules, and regular audits—conditions that align with Bithumb’s post-breach recovery strategy.
Thailand, on the other hand, introduced its Digital Asset Decree in 2018, creating a legal foundation for crypto exchanges, initial coin offerings (ICOs), and digital asset managers. With the Thai SEC issuing licenses to compliant platforms, Bithumb’s move positions it to become one of the early foreign entrants in this emerging ecosystem.
This dual-market approach allows Bithumb to leverage South Korea’s technological expertise while adapting to regional regulatory expectations—a model increasingly adopted by forward-thinking crypto platforms.
Security Incident: $32 Million Crypto Theft
Despite its ambitious growth plans, Bithumb faced a major setback in June 2018 when it confirmed the theft of approximately 35 billion KRW (~$32 million) worth of cryptocurrencies, including NEM and SNT tokens.
The breach led to an immediate suspension of all deposit and withdrawal functions across the platform. In a public statement, Bithumb emphasized that all user assets were being transferred to cold wallets—offline storage systems designed to prevent unauthorized access.
The incident raised concerns about exchange security practices, especially given Bithumb’s status as one of South Korea’s largest trading platforms at the time. However, the exchange pledged full responsibility for compensating affected users, reinforcing trust through transparency and swift action.
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Such events underscore the importance of robust cybersecurity infrastructure in the crypto industry. They also highlight why regulatory approval processes in countries like Japan and Thailand place heavy emphasis on technical safeguards before granting operational licenses.
Price and Volume Anomalies Signal Market Sensitivity
Around early July 2018, anomalies were observed in the trading activity of certain altcoins on Bithumb, notably NEM and Status (SNT). Reports indicated unusual spikes in price and trading volume, prompting speculation about potential market manipulation or bot-driven trading.
While no conclusive evidence of wrongdoing was presented at the time, these fluctuations illustrated how regional exchanges can experience disproportionate market impacts due to concentrated user bases and limited liquidity compared to global platforms.
Regulators have since increased monitoring of trading patterns to detect wash trading and spoofing—practices that distort true market value. For Bithumb, addressing these concerns is crucial as it seeks credibility in more regulated jurisdictions.
Legalization of Fiat On-Ramps in South Korea
A significant development occurred in August 2018 when South Korean authorities permitted regulated exchanges to allow fiat currency deposits directly linked to verified bank accounts. This meant users aged 19 and above could bind their personal bank accounts to their Bithumb profiles, enabling faster and more secure KRW deposits and withdrawals.
This policy shift marked a turning point in South Korea’s crypto regulation—moving from restrictive measures toward controlled integration with the traditional financial system. It also improved user experience by reducing reliance on peer-to-peer transfers and third-party payment methods.
For Bithumb, this change enhanced liquidity and reinforced its role as a compliant gateway between fiat and digital assets.
Frequently Asked Questions (FAQ)
What is Bithumb?
Bithumb is a South Korean cryptocurrency exchange founded in 2013. It quickly rose to prominence as one of the country's largest digital asset trading platforms, offering a wide range of cryptocurrencies paired with the Korean won (KRW).
Why did Bithumb expand into Japan and Thailand?
Bithumb expanded into Japan and Thailand to diversify its operations amid tightening regulations in South Korea. Both countries offer structured regulatory environments and growing interest in blockchain technology, making them ideal markets for international growth.
Was Bithumb hacked?
Yes, in June 2018, Bithumb suffered a security breach resulting in the loss of approximately $32 million worth of cryptocurrencies. The platform temporarily halted deposits and withdrawals and committed to covering all user losses.
Is Bithumb available worldwide?
As of 2018, Bithumb primarily served users in South Korea. Its expansion efforts into Japan and Thailand aimed to increase international accessibility, though availability depends on local regulations and licensing approvals.
How does Bithumb ensure user security?
Following the 2018 breach, Bithumb strengthened its security protocols by implementing multi-layered authentication, enhanced monitoring systems, and transferring most user funds to cold wallets—offline storage solutions resistant to hacking attempts.
What cryptocurrencies does Bithumb support?
Bithumb supports major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), NEM (XEM), and Status (SNT), among others. The platform regularly evaluates new listings based on market demand and compliance standards.
Looking Ahead: The Future of Regional Crypto Exchanges
Bithumb’s journey reflects the evolving nature of cryptocurrency exchanges in Asia—balancing innovation with compliance, growth with security. As more countries develop clear regulatory frameworks, exchanges that prioritize transparency and user protection are likely to gain long-term advantages.
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While challenges remain—from cyber threats to regulatory hurdles—the path forward involves strategic partnerships, technological upgrades, and cross-border collaboration. For platforms like Bithumb, success will depend not just on market share, but on building lasting trust in an increasingly scrutinized industry.
Core Keywords: Bithumb, cryptocurrency exchange, Japan FSA, Thailand SEC, crypto security, NEM theft, fiat on-ramp, regulatory compliance