Bithumb to ban overseas users who fail mobile KYC as regulations are tougher
One of South Korea’s Largest Digital Currency Exchanges to Become the First ban foreign users who fail mobile phone Know-Your-Customer (KYC) checks amid tighter regulations in the country. Bithumb has yet to announce when this mandatory KYC will begin.
South Korea has long abandoned its hands-free approach to digital currencies and has continued to strengthen its policies governing the sector. In response, Korean stock exchanges have stepped up their compliance efforts as deadlines loom.
According to Pulse, Bithumb is the latest to take further action, insisting that all foreign nationals residing in the country must adhere to a mandatory cell phone verification rule. This rule will probably be applied before the end of the year, but the exchange did not specify the exact date of the deployment, other than saying that “it is by 2021 that customer due diligence will become mandatory”.
This new rule follows a previous decision by Bithumb not to allow foreigners to register as new users without their foreigner registration cards.
In his announcement, Bithumb urged all foreigners who are unable to comply with this new rule to withdraw their assets before they start enforcing it.
The new rule comes just three weeks before the deadline for Korean exchanges to register with financial authorities. As the deadline approaches, September 24, the stock exchanges have taken further steps to meet their obligations. These include establishing real name verification for users in partnership with local banks as well as obtaining the Information Security Management System (ISMS) certificate.
Upbit is the only stock exchange in South Korea that has fully fulfilled its obligations and registered with the Financial Intelligence Unit. The chief financial regulator had indicated two weeks ago that he expected two more exchanges to register before the end of September, but so far Upbit remains the only one to have this distinction.
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