Bithumb XLM Suspension: Essential Network Upgrade Halts Stellar and AQUA Transactions

SEOUL, South Korea – January 21, 2025 – In a move highlighting the ongoing evolution of blockchain infrastructure, leading South Korean cryptocurrency exchange Bithumb has announced a temporary suspension of deposit and withdrawal services for Stellar (XLM) and the AQUA token. This proactive measure directly supports a significant, scheduled upgrade to the Stellar network, ensuring user asset security and platform stability during the technical transition. The suspension is set to commence precisely at 8:00 a.m. UTC on January 22, 2025, affecting a notable segment of the exchange’s trading pairs.

Bithumb XLM Suspension: Decoding the Announcement

Bithumb’s official communication, released on January 21, 2025, provides clear operational guidance for its user base. Consequently, all deposit and withdrawal functions for the Stellar (XLM) cryptocurrency and the AQUA utility token will be temporarily disabled. Importantly, trading of these assets on the exchange’s spot markets will remain fully operational throughout the suspension period. This distinction is crucial for traders, as it allows for the continuation of buy and sell orders using existing exchange balances. The exchange has strongly advised users to complete any necessary external transfers before the 8:00 a.m. UTC deadline to avoid disruption.

This action is not an isolated event but a standard, security-first protocol within the cryptocurrency industry. Exchanges globally routinely enact such temporary halts during underlying blockchain network upgrades, forks, or maintenance windows. The primary goal is to prevent transaction failures, potential double-spends, or loss of funds that could occur if the exchange’s systems and the upgraded network become temporarily incompatible. For context, major exchanges like Coinbase and Binance have implemented similar suspensions for assets like Ethereum during its landmark Merge upgrade and for various Bitcoin Cash hard forks.

The Driving Force: Stellar Network’s Protocol 21 Upgrade

The suspension is directly tied to the implementation of “Protocol 21” on the Stellar network. This upgrade represents a core evolution of the Stellar blockchain’s consensus mechanism and smart contract capabilities. Specifically, Protocol 21 introduces Soroban, Stellar’s new smart contracts platform, into a production-ready environment on the mainnet. This transition follows extensive testing on dedicated testnets and represents a pivotal moment for the Stellar ecosystem, aiming to expand its functionality beyond fast, low-cost payments into the broader decentralized application (dApp) space.

Network upgrades of this magnitude require validators—the nodes that secure and operate the blockchain—to update their software simultaneously. During this coordinated update window, the network can experience brief instability or forks. Therefore, exchanges like Bithumb must pause external transaction flows to guarantee that all user deposits and withdrawals are recorded on the correct, canonical chain. The Stellar Development Foundation (SDF) typically provides extensive advance notice to ecosystem partners, allowing exchanges ample time to plan these operational pauses.

Expert Insight on Exchange Protocol

“This type of announcement is a hallmark of a responsible exchange operating procedure,” explains a blockchain infrastructure analyst from a Seoul-based fintech research firm. “It signals that Bithumb’s operational team is closely aligned with the development roadmaps of the assets they list. The temporary inconvenience of paused withdrawals is vastly preferable to the alternative risk of users losing funds due to a technical mismatch. Furthermore, allowing spot trading to continue demonstrates sophisticated backend engineering that can isolate wallet functions from trading engines.” This approach balances user access with paramount security concerns.

Impact on Traders and the AQUA Token Ecosystem

The inclusion of AQUA in this suspension is particularly noteworthy. AQUA is a governance and utility token native to the Stellar ecosystem, primarily used within the Aquarius decentralized exchange (DEX) and liquidity protocols. Its functionality is deeply intertwined with the Stellar network’s core operations. The Protocol 21 upgrade, with its Soroban smart contracts, is expected to significantly enhance the capabilities of DeFi applications like Aquarius. Therefore, ensuring AQUA’s seamless transition is critical for its community.

For traders on Bithumb, the immediate impact is manageable but requires attention. Users should note the following key points:

• Deposits/Withdrawals Halted: No sending XLM or AQUA to/from external wallets during the suspension.
• Trading Continues: XLM/KRW and AQUA/KRW trading pairs remain active.
• No Impact on Other Assets: All other cryptocurrencies on Bithumb are unaffected.
• Post-Upgrade Resumption: Services will resume once Bithumb confirms network stability, typically within hours of the upgrade completion.

Historically, such suspensions have led to minor, short-term price volatility due to constrained arbitrage opportunities between exchanges. However, major network upgrades often generate positive long-term sentiment, as seen with previous Stellar protocol updates that improved transaction efficiency.

Bithumb’s Position in the South Korean Crypto Landscape

Bithumb’s announcement reinforces its status as a major regulated player in South Korea’s stringent digital asset market. The exchange operates under the guidelines of the Financial Services Commission (FSC) and the Financial Intelligence Unit (FIU), which mandate rigorous user protection measures. Proactive communication about service suspensions aligns perfectly with these regulatory expectations for transparency and risk management. Comparatively, other South Korean exchanges such as Upbit and Korbit often issue similar notices for network upgrades, creating an industry-standard practice within the region.

The South Korean market is known for its high retail participation and significant trading volumes in altcoins like XLM. Therefore, Bithumb’s operational decisions directly influence liquidity and access for a large investor base. The exchange’s commitment to supporting ecosystem upgrades like Protocol 21 also strengthens its relationships with blockchain projects, potentially influencing future listing decisions and collaborative developments. This symbiotic relationship between exchanges and blockchain networks is a cornerstone of the industry’s infrastructure layer.

Conclusion

Bithumb’s temporary suspension of XLM and AQUA deposits and withdrawals is a standard, security-focused procedure enabling a critical upgrade to the Stellar network. This action underscores the complex interdependence between cryptocurrency exchanges and the underlying blockchain protocols they support. For users, it represents a brief operational pause that safeguards assets. For the Stellar ecosystem, it facilitates the successful deployment of Protocol 21 and the Soroban smart contracts platform, marking a significant step in its technological roadmap. As the January 22 deadline approaches, users should plan accordingly, while the broader market watches for the successful activation of new functionality on one of the industry’s established payment networks.

FAQs

Q1: Can I still trade XLM and AQUA on Bithumb during the suspension?
A1: Yes. The suspension applies only to depositing to and withdrawing from the exchange. Spot trading for both XLM and AQUA against the Korean Won (KRW) will continue uninterrupted using existing balances on the platform.

Q2: How long will the deposit and withdrawal suspension last?
A2: Bithumb has not announced a specific end time. The suspension begins at 8:00 a.m. UTC on January 22 and will remain in effect until the exchange confirms the Stellar network upgrade (Protocol 21) is stable and its systems are fully synchronized. Similar past upgrades have resulted in suspensions lasting between 2 to 12 hours.

Q3: Why is AQUA included in the suspension if it’s a separate token?
A3: AQUA is a token issued on the Stellar network. Its creation, movement, and smart contract interactions are governed by the Stellar protocol. Any upgrade to the core Stellar blockchain directly affects all assets built upon it, necessitating a precautionary pause for AQUA transactions as well.

Q4: Will my XLM or AQUA holdings on Bithumb be safe during this time?
A4: Yes. The suspension is a preventive control measure. User assets remain securely held in Bithumb’s custody. The action is taken precisely to ensure safety by preventing transactions during a potential period of network instability.

Q5: What should I do if I have a pending withdrawal when the suspension starts?
A5: Bithumb advises completing all external transfers before the 8:00 a.m. UTC deadline. Any withdrawal request initiated but not fully processed by the network by that time will likely be canceled or fail. You should check your transaction status and resubmit after the exchange announces the full resumption of services.