Bithumb to restrict foreign accounts without KYC
The exchange reportedly asked all users likely to be affected to withdraw their funds
Leading Korean crypto exchange Bithumb has informed its community of non-Korean users that they will be denied access to the platform unless they complete an identity verification process on mobile.
According to local news exit Pulse News, Bithumb is taking action as he comes into compliance with Korea’s new stringent anti-money laundering (AML) regulations.
The Know Your Customer (KYC) notice applies to all foreign users based in Korea and registered on the Bithumb exchange.
Impulse reports that the new KYC requirement is expected to come into effect later this year. However, the exchange has not communicated exactly when it intends to start enforcing the ban.
Bithumb’s drastic action follows the introduction of stricter AML requirements by Korean authorities. It also follows the exchange informing users that there would be no recordings involving strangers without proper documentation.
The herald of Korea Remarks in a development article that Bithumb recently limited accounts with IP addresses of “High-risk territories”. The news site also reports that the cryptocurrency exchange’s actions target user accounts created from countries deemed worthy of scrutiny, as pointed out by the Financial Action Task Force (FATF). .
The exchange nonetheless asked users in the targeted group to start withdrawing their holdings if they are having trouble completing the KYC check. According to Bithumb, affected users are free to move their digital assets at any time before the country’s mandatory requirements go into effect later in the year.
Bithumb recently joined forces with Coinone and Korbit, two other major Korean-based cryptocurrency exchanges, to launch a venture to implement the FATF’s “travel rule”.
The initiative was announcement on August 31 and will see all three exchanges pursue individual and joint efforts to comply with AML compliance requirements.