South Korean Parliament Summons Bithumb Over Bitcoin Payment Error

VADODARA, February 9, 2026 — South Korea's National Assembly escalates its scrutiny of cryptocurrency exchanges. The Political Affairs Committee schedules an emergency plenary meeting for 1:00 a.m. UTC on February 11. This session directly addresses Bithumb's recent erroneous Bitcoin payments. The committee rarely convenes plenary sessions for crypto-specific issues. This move the incident's perceived severity within the legislative body.

Investigation: Parliamentary Intervention in Exchange Operations

According to an exclusive report from Digital Asset, the Political Affairs Committee will hold a full plenary meeting. The agenda focuses solely on Bithumb's Bitcoin payment error. Both major political parties—the ruling Democratic Party and opposition People Power Party—have publicly criticized the exchange. They label the matter as "serious." This bipartisan concern suggests unified regulatory pressure. The session timing indicates urgency, bypassing standard committee procedures.

Market structure suggests such direct parliamentary involvement is atypical. Historically, South Korean financial regulators like the Financial Supervisory Service (FSS) handle exchange oversight. This parliamentary escalation points to a potential policy shift. It may precede stricter legislative amendments to the Financial Services Commission's digital asset framework.

Market Context & Historical Precedent

This incident occurs amid a fragile global crypto sentiment. The Crypto Fear & Greed Index sits at 14/100—Extreme Fear. Bitcoin trades at $69,463, down 1.25% in 24 hours. South Korea has historically been a volatile regulatory jurisdiction. The 2017-2018 exchange crackdowns and subsequent Kimchi premium collapses serve as precedent.

In contrast, current market conditions differ. Institutional participation is higher. Regulatory actions now carry greater weight for global liquidity. The Bithumb error acts as a catalyst. It tests the resilience of South Korea's post-2021 Virtual Asset User Protection Act. Related developments highlight broader pressures: digital asset funds see $187 million in outflows, marking a third consecutive week of withdrawals.

Technical Architecture & Price Action

On-chain data indicates increased selling pressure on Korean exchanges post-incident. Bitcoin's price action shows a Fair Value Gap (FVG) between $70,200 and $71,000. This zone acts as immediate resistance. The 200-day moving average at $68,500 provides critical support. A break below this level would signal a bearish order block activation.

Market analysts note a divergence between technical indicators and sentiment. The Relative Strength Index (RSI) on daily charts reads 42—neutral. However, the Extreme Fear sentiment suggests an oversold condition. This creates a potential liquidity grab scenario. Large players may exploit panic selling to accumulate at lower levels. The Fibonacci 0.618 retracement level from the 2025 low sits at $67,800, offering secondary support.

By The Numbers

Why It Matters

This parliamentary session matters for three reasons. First, it signals heightened regulatory risk in a major crypto market. South Korea ranks among the top five jurisdictions for Bitcoin trading volume. Second, it may set a precedent for legislative intervention in technical exchange errors. Third, it exacerbates existing market fragility. The FSS chief previously warned of "catastrophic" fallout for sellers affected by the Bithumb error.

Institutional liquidity cycles are sensitive to regulatory clarity. Uncertainty often triggers capital flight. The current $187 million in weekly outflows from digital asset funds may accelerate. Retail market structure in South Korea is particularly reactive. Past regulatory announcements have caused Kimchi premium swings exceeding 10%.

Expert Commentary

"Market structure suggests regulatory events now have asymmetric impacts. The Bithumb incident is not isolated. It tests the entire Korean digital asset framework. A harsh parliamentary response could trigger a localized liquidity crisis. Conversely, a measured approach may stabilize sentiment. The key is whether this leads to punitive legislation or operational guidelines."

Market Outlook & Price Scenarios

Two primary scenarios emerge from current data.

• Bullish Invalidation Level: $71,500. A break above this resistance, coupled with a parliamentary outcome deemed 'non-punitive,' could trigger a short squeeze. It would invalidate the current bearish structure and target the $73,000 zone.
• Bearish Invalidation Level: $68,500. A sustained break below the 200-day moving average confirms bearish momentum. It opens a path toward the Fibonacci support at $67,800. This scenario likely accompanies a harsh regulatory statement from the committee.

The 12-month institutional outlook hinges on regulatory clarity. If South Korea introduces restrictive laws, it could dampen Asia-Pacific adoption. However, a framework that enhances consumer protection without stifling innovation may bolster long-term growth. The 5-year horizon still favors institutional adoption, but jurisdictional risks are rising.