South Korea Probes Upbit and Bithumb Over Cross-Border Data Sharing

South Korea’s top two crypto exchanges are now under the microscope. The Korea Personal Information Protection Commission has launched a formal investigation into Upbit and Bithumb. The question at the center of it all: Did these exchanges illegally share user data with overseas partners? The investigation is now in its final stage. Written inquiries are done. On-site inspections are complete. Only one thing remains: the decision on sanctions.

What Triggered the Investigation

The issue started with order book sharing. Both Upbit and Bithumb share order books with overseas exchanges to increase liquidity and make trading smoother. That is a common practice. But South Korea news today reveals there is a serious legal problem hiding inside that process.

If user identification information is included in those shared order books, it counts as a cross-border transfer of personal data. It’s under South Korea’s Personal Information Protection Act, which requires user consent. Without it, the exchanges may have broken the law. Currently, Upbit shares its USDT market order book with Upbit APAC in Southeast Asia. Bithumb previously shared its order book with Steller, an Australian exchange. Both arrangements are now under scrutiny.

Where the Investigation Stands Now

The Commission has moved quickly. Since early 2026, investigators have conducted both written and on-site reviews of Upbit and Bithumb’s data practices. The process is now essentially complete. A Commission official stated clearly, “We plan to finalize the investigation results within the second half of the year.” That means a decision is coming soon. While depending on the findings, sanctions could follow. This is South Korea news today that the entire crypto industry is watching closely. The outcome will set a precedent for how exchanges handle cross-border data going forward.

Bithumb Faces Additional Legal Pressure

Bithumb is dealing with more than just this investigation. Financial authorities are separately probing the exchange’s order book sharing practices under a different law. the Act on Reporting and Use of Specific Financial Transaction Information. On top of that, Bithumb is pursuing legal action against financial authorities over sanctions tied to a partial suspension of operations. A court ruling on the Bithumb accident case is expected soon. So Bithumb is fighting on two fronts at once. That adds even more pressure to an already complicated situation.

What This Means for South Korea’s Crypto Industry

This case goes beyond just Upbit and Bithumb. It touches every exchange operating in South Korea that shares data with overseas partners. If the Commission rules against these two giants, the entire industry will need to rethink how they handle liquidity sharing and international data flows. For users, this is actually good news. It means regulators are paying attention. Personal data protection is being taken seriously, even in fast-moving sectors like crypto. South Korea has always been one of the most active crypto markets in the world. How this investigation ends will shape the rules of the game for every exchange operating there.