Following the strict Anti-Money Laundering directives released by South Korean authorities, Bithumb has also announced new and rigid regulations. These are mainly focused on crypto exchanges and their international users. This crypto exchange platform has also mentioned that any foreign user with incomplete mobile KYC validation will be banned from trading in South Korea.
Based on what was provided by the local coverage, any of the non-Korean Bithumb users will have to comply with the newly added rules. This means getting a complete Know Your Customer verification is compulsory for the traders now.
It is expected that these new terms will be put into effect from 2021 itself. But, the exact release date for these requisites has not been announced by the Bithumb team. However, it is assured that any foreigner living in Korea will not be allowed to access this service without the right recognition.
What encouraged the Authorities?
It is obvious that Bithumb’s actions are in accordance with the Anti-Money Laundering directives that were introduced by the national government. It was because a study highlighted that Seoul Central Customs have discovered 33 investors who have taken part in unauthorized cryptocurrency exchanges.
Their total transaction amount was placed at $1.48 billion. Initially, Bithumb only limited its services to users from nations that were connected with the Financial Action Task Force and their growing tracklist. They also offered their trading to “high-risk jurisdictions” account holders.
Furthermore, Bithumb has also requested the investors to make asset withdrawals in case they are unable to meet this requirement by 2021. South Korea has placed a ban on all users from around 20 different countries.
