Bithumb is one of South Korea’s most prominent cryptocurrency exchanges, established in 2013. Over the years, it has built a strong presence in the Asian crypto market, offering over 200 digital assets and processing more than $2.5 billion in daily trading volume. Despite its popularity, users often question its safety, regulatory compliance, and overall legitimacy. This comprehensive review explores Bithumb’s features, services, security history, and how it compares to global platforms—helping you make an informed decision.
What Is Bithumb?
Bithumb launched in 2013 and quickly became a leading player in South Korea's booming cryptocurrency scene. The exchange supports more than 200 cryptocurrencies, including major coins like Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP), as well as numerous altcoins popular among Korean traders.
With average daily trading volumes exceeding $2.5 billion, Bithumb ranks among the top 20 crypto exchanges globally by volume. However, access is currently limited to users within South Korea due to strict local regulations and identity verification requirements.
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Key Features of Bithumb
- Founded: 2013
- Headquarters: South Korea
- Cryptocurrencies Listed: 200+
- Trading Fees: 0.04% (maker), 0.25% (taker)
- 24-Hour Trading Volume: ~$2.5 billion
- Supported Currencies: KRW, BTC, ETH, USDT pairs
Bithumb operates primarily in Korean won (KRW), making it ideal for domestic investors looking to trade crypto with fiat. Its user interface is available only in Korean, which may pose a challenge for international users.
Pros and Cons of Using Bithumb
✅ Advantages
- Low Trading Fees: Competitive maker fees at 0.04%, with potential discounts through fee coupons.
- High Liquidity: Strong trading volume ensures fast order execution and minimal slippage.
- Diverse Crypto Selection: Over 200 supported cryptocurrencies cater to both mainstream and niche investors.
- Additional Services: Offers staking, margin trading, OTC desks, and educational resources.
❌ Limitations
- Geographic Restriction: Only available to South Korean residents.
- Language Barrier: Website and customer support are exclusively in Korean.
- Past Security Incidents: Experienced significant hacks in previous years.
- Limited Customer Support: Response times can be slow, especially for non-Korean speakers.
- Regulatory Scrutiny: Has faced multiple fines from financial authorities for compliance failures.
Regulatory Status and Compliance
Bithumb is registered under the Korean Corporate Registry (RKCF) with license number 220-88-71844. While it operates under oversight from South Korea’s Financial Supervisory Service (FSS) via the DART platform, it falls into the “beyond” regulatory category—meaning it complies with certain reporting standards but isn’t fully licensed like traditional financial institutions.
South Korea has tightened cryptocurrency regulations in recent years, requiring exchanges to implement real-name banking partnerships, anti-money laundering (AML) protocols, and Know Your Customer (KYC) procedures. Bithumb meets many of these criteria but remains under continuous review due to past violations.
Available Trading Products
Beyond standard spot trading, Bithumb offers several advanced financial tools:
🔹 Margin Trading
Allows users to borrow funds to increase their position size, amplifying both potential gains and risks.
🔹 Over-the-Counter (OTC) Trading
Facilitates large-volume transactions without impacting market prices—ideal for institutional investors.
🔹 Staking Services
Users can lock up select cryptocurrencies to earn passive income by supporting blockchain networks.
🔹 Auto Trading
Algorithm-based trading bots operate 24/7 using customizable buy/sell parameters to optimize returns.
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Additional Services Offered
- Crypto Lending: Users can lend or borrow BTC and ETH for short periods (3 or 7 days) at variable interest rates.
- Payment Solutions: Enables merchants to accept crypto payments seamlessly.
- Gift Vouchers: Purchase Bitcoin gift cards redeemable for BTC value.
- Blockchain Consulting: Provides enterprise-level advisory for businesses integrating blockchain technology.
- Educational Resources: Regular market news, research reports, and learning materials for traders.
How to Create a Bithumb Account
Due to regulatory requirements, account creation is restricted to South Korean citizens or residents. The process involves six key steps:
- Visit the official Bithumb website and click “Sign Up” in the top-right corner.
- Enter your email address and create a secure password meeting platform requirements.
- Agree to the terms of service and privacy policy.
- Verify your email via a confirmation link sent to your inbox.
- Submit personal details including full name, date of birth, and phone number.
- Upload government-issued ID documents and complete additional verification steps.
Note: Foreign nationals without Korean residency cannot complete this process.
How to Buy Cryptocurrency on Bithumb
- Complete KYC Verification
Upload a valid ID and proof of address. A selfie may also be required. - Deposit Funds
Deposit Korean won via bank transfer or add crypto directly to your wallet. - Navigate to Buy Crypto Section
Choose your desired cryptocurrency (e.g., BTC, ETH). - Place Your Order
Enter the amount in KRW or crypto units, review fees, then confirm with “Buy.” - Store or Transfer Assets
Purchased coins are stored in your Bithumb wallet. You can hold them or withdraw to a private wallet.
Fee Structure
| Transaction Type | Fee |
|---|---|
| Maker Fee | 0.04% |
| Taker Fee | 0.25% |
| KRW Deposit | Free |
| Cryptocurrency Deposit | Free (network fees apply) |
| BTC Withdrawal | 0.001 BTC (~$26) |
Bithumb offers discounted trading fees through fee coupons. For example, purchasing an 80,000 KRW coupon can reduce taker fees down to 0.04%, saving frequent traders significantly over time.
Has Bithumb Been Hacked or Involved in Scandals?
Yes. Bithumb has faced several high-profile controversies:
- 2017 Hack: Approximately $32 million worth of cryptocurrencies were stolen, leading to temporary suspension of services.
- 2018 FSC Fine: The Financial Services Commission (FSC) fined Bithumb for inadequate security measures and improper registration.
- 2020 Disclosure Violation: Penalized again for failing to disclose operational data to investors.
- 2022 CEO Death & Embezzlement Allegations: The CEO of Bithumb’s parent company was accused of fund misappropriation and stock manipulation before being found dead—an event that triggered further investigations.
These incidents have raised concerns about governance and long-term reliability.
How Does Bithumb Compare to Other Exchanges?
| Feature | Bithumb | Global Competitor A | Global Competitor B | Global Competitor C |
|---|---|---|---|---|
| Trading Fees | Maker: 0.04%, Taker: 0.25% | Lower taker fees | Moderate fees | Higher maximum fees |
| Cryptocurrencies | 200+ | 500+ | 11 | 200+ |
| Regulation | RKCF registered (South Korea) | Regulated in multiple jurisdictions | Licensed in Japan, U.S., EU | Multi-region oversight |
While Bithumb offers solid liquidity and low maker fees, its lack of international accessibility and regulatory clarity places it behind globally compliant exchanges.
Frequently Asked Questions (FAQ)
Q: Is Bithumb safe to use?
A: Bithumb implements standard security protocols like cold storage and two-factor authentication (2FA). However, its history of hacks and executive misconduct raises caution flags. Use only if you're a resident with no alternatives.
Q: Can foreigners use Bithumb?
A: No. Bithumb requires Korean residency and real-name bank accounts linked to Korean financial institutions.
Q: Does Bithumb have an English interface?
A: Not officially. The platform operates solely in Korean, limiting usability for non-Korean speakers.
Q: Are deposits free on Bithumb?
A: Yes—KRW deposits are free, and crypto deposits incur no platform fees (though network fees apply when sending from external wallets).
Q: Why are Bithumb’s taker fees higher than maker fees?
A: This is standard industry practice. Makers add liquidity (placing limit orders), while takers remove it (market orders), so takers pay more.
Q: Can I stake crypto on Bithumb?
A: Yes. Bithumb supports staking for select coins, allowing users to earn rewards by holding assets on the platform.
Final Verdict
Bithumb remains a powerful exchange for South Korean traders seeking high liquidity and diverse crypto options. However, its geographical restrictions, language limitations, past security breaches, and regulatory issues make it less suitable for global audiences.
For international users seeking similar performance with better transparency and accessibility, exploring globally regulated platforms might be a safer choice.
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