South Korean Cryptocurrency Exchange Bithumb Adds Support for USDT Stablecoin
Amidst rising global trading volumes, another leading South Korean crypto exchange, Bithumb, has listed the US dollar-pegged stablecoin USDT. This move comes shortly after Coinone, another major exchange in the country, added support for the stablecoin on November 30. Both Bithumb and Coinone offer support for USDT on the Tron blockchain protocol.
Regulatory Scrutiny and Delisting
In recent years, there has been an increased scrutiny of the coins listed on South Korean exchanges, resulting in the removal of so-called “kimchi coins” in 2021. These low-cap altcoins, primarily popular in South Korea, have gained notoriety for their involvement in price manipulation. Experts believe that regulators have put pressure on South Korean exchanges to slim down their token offerings, leading to multiple delisting events.
“USDT is popular in South Korea, as is the case in much of Asia, where many traders use the coin to trade Bitcoin on peer-to-peer markets.”
Prior to the availability of USDT on local exchanges, domestic crypto traders had to send their assets overseas and then utilize the proceeds to trade in the coins of their choice. However, USDT has become a preferred method of trading Bitcoin for many South Korean traders.
Bithumb, which recently reported sluggish financial results for FY2023 Q3, is hopeful that the addition of USDT will help revive its fortunes. The exchange has introduced a promotional event where customers can receive fractional Bitcoin “cashback” rewards when placing maker orders. This event will run until December 11.
Controversy and Potential Misuse
Tether’s stablecoin has faced some controversies surrounding its USD reserves in the past. Despite this, South Korean exchanges like Bithumb and Coinone seem to have disregarded these concerns and embraced the listing of USDT.
Furthermore, South Korea recently witnessed a customs service raid on a suspected international gambling ring that allegedly used USDT. The ring is believed to have paid online casino users their winnings in USDT, which was then exchanged for fiat on an “illegal” Philippines-based crypto exchange.
