CME Group And Korean Crypto Giants Face Regulatory Shifts

The world of cryptocurrency and financial markets is in the midst of a rapid transformation, as global exchanges and regulators grapple with new technologies, surging trading volumes, and the challenge of keeping pace with the digital age. In South Korea, authorities are tightening oversight on major crypto exchanges, while in the United States, the CME Group is racing ahead with innovations like 24/7 crypto trading and the development of a tokenized cash product in partnership with Google Cloud. These parallel developments highlight both the promise and the growing pains of integrating cryptocurrencies into mainstream finance.

On February 4, 2026, South Korea’s Fair Trade Commission (FTC) sent a clear message to the nation’s crypto industry. Investigators descended on the headquarters of Bithumb, the country’s second-largest crypto exchange, as part of a probe into alleged false advertising. According to Yonhap, Bithumb had claimed in press releases during March and April 2025 that its liquidity was the highest among local crypto exchanges. However, data from CoinGecko painted a different picture: Upbit, operated by Dunamu, maintained a commanding 68 percent share of the local cryptocurrency trading volume in 2025, while Bithumb trailed with 28 percent.

The FTC is now investigating whether Bithumb’s liquidity claims violated South Korea’s local advertisement act, which prohibits deceptive or exaggerated ads. The stakes are high, as the regulator has the authority to impose sanctions for what it deems undue business practices. When pressed for comment, Bithumb officials declined, citing the ongoing nature of the investigation.

But Bithumb isn’t the only exchange under the microscope. Dunamu, the powerhouse behind Upbit, is also facing scrutiny. The FTC is looking into allegations that Dunamu prohibited rival platforms from trading its unlisted stocks, effectively locking transactions of its own shares exclusively to its Stockplus platform. South Korean fair trade law stipulates that firms should not unfairly refuse transactions, and the investigation signals a broader government push to bring crypto exchanges in line with the standards faced by legacy financial institutions. Dunamu, for its part, also declined to comment on specifics of the probe.

Despite their size and influence, South Korea’s crypto exchanges are not legally designated as financial institutions. This regulatory gray area has allowed them to sidestep the stricter oversight that banks and traditional brokerages face. Yet, as the exchanges rake in record profits—Dunamu posted a net profit of 239 billion won (about $163 million) in the third quarter of 2025, up 308 percent year-over-year, while Bithumb’s profits soared 3,285 percent to 105.4 billion won—the calls for tighter regulation have grown louder. According to Yonhap, the government’s latest actions reflect a determination to close this gap and treat these "quasifinancial companies" with the seriousness their market impact demands.

Not everyone agrees with the crackdown-first approach. Some experts, like Sejong University’s Professor Kim Dae-jong, argue that South Korea should look to the United States for inspiration. "In the U.S., some big tech companies issue stablecoins, and the country is generally open to embracing the new financial paradigm driven by cryptocurrencies," Kim observed. "Korea should pursue a longer-term approach rather than sticking to the long-held regulation-first stance."

Meanwhile, across the Pacific, the CME Group is embracing the future of digital finance with remarkable speed and ambition. On the same day as the Korean regulator’s raid, CME Chairman and CEO Terrence Duffy announced that the exchange will launch 24-hour, seven-day-a-week trading for its cryptocurrency futures and options in the second quarter of 2026. According to Markets Media, Duffy said, "We will begin offering 24/7 trading for our entire crypto suite in the next quarter to enable our customers to hedge exposure to the underlying cash markets for these products, which currently trade throughout the weekend."

The numbers speak for themselves. In 2025, CME facilitated nearly $3 trillion in notional crypto trading, with daily volumes exceeding $13 billion in the fourth quarter alone. The exchange’s open interest in crypto products more than doubled as market participants flocked to regulated venues. On February 9, 2026, CME is set to expand its crypto suite further by introducing futures for Cardano, Chainlink, and Stellar, signaling its commitment to staying ahead of the curve.

But CME isn’t stopping there. In a move that could reshape the very foundation of how collateral is managed in financial markets, Duffy revealed that CME is developing a tokenized cash product in collaboration with Google Cloud, with a rollout planned for later this year. As reported by The Block, this "tokenized cash" could be used as collateral for derivatives trading, repo agreements, securities lending, and more. Duffy explained, "Not only are we looking at tokenized cash, but we are looking at different initiatives with our own coin that we could potentially put on a decentralized network." He emphasized, however, that any token accepted as collateral would be subject to rigorous risk assessment, adding, "If you were to give me a token from a systemically important financial institution, I would probably be more comfortable than maybe a third- or fourth-tier bank trying to issue a token for margin."

This initiative comes on the heels of a Commodity Futures Trading Commission (CFTC) pilot program that began allowing certain cryptocurrencies—such as Circle’s USDC stablecoin, bitcoin, and ether—to be used as collateral in derivatives markets. The CME’s efforts could accelerate the adoption of crypto collateral across the industry, provided that regulatory and risk management standards are met.

Elsewhere, CME is broadening its reach in retail and international markets. The exchange launched FanDuel Predicts in December 2025, a joint venture with Flutter Entertainment’s FanDuel, offering event contracts on financial markets and sports. Since its debut, over 68 million event contracts have traded at CME, including more than seven million tied to market events. The exchange’s Dubai office, opened in the fourth quarter of 2025, has seen average daily trading volume in the United Arab Emirates jump by 31 percent year-over-year, reflecting surging demand from both institutional and retail participants in the region.

Financially, 2025 was CME’s best year yet, with annual revenue climbing to $6.5 billion—a 6 percent increase from 2024—and operating income reaching $4.2 billion. Adjustments to transaction and market data fees, effective April 1, 2026, are expected to nudge total revenue up by an additional 1 to 1.5 percent, according to CME’s chief financial officer, Lynne Fitzpatrick.

As both South Korea and the United States grapple with the challenges and opportunities presented by the crypto revolution, the contrast in their approaches couldn’t be starker. While Korean regulators clamp down on perceived excesses and seek to bring crypto exchanges under tighter control, American institutions like CME are forging ahead with innovations that could set the standard for the next era of finance. The coming year promises to test which path will ultimately prove more resilient and rewarding for investors, institutions, and the broader public.

For now, the only certainty is that the world’s financial markets are changing—fast—and those who can adapt, innovate, and manage risk wisely will shape the future of money.