South Korean exchange Bithumb bids farewell to users, bans trading in 11 countries!

On 27th May, Bithumb, South Korea’s biggest cryptocurrency exchange announced in a press release that it would follow and revise the “Regulation on the Prevention of Money Laundering Act”.

Bithumb has banned digital asset trading with investors living in countries that fall under the high-risk areas according to the Non-Cooperative Countries and Territories [NCCT] Initiative.

North Korea, Iran, Iraq, Sri Lanka, Syria, Trinidad and Tobago, Ethiopia, Tunisia, Vanuatu, Bosnia and Herzegovina, and Yemen are those 11 nations that have not taken enough action against terrorist financing, money laundering, and other activities that may be a threat to the financial system as a whole, as recognized by the Financial Action Task Force on Money Laundering [FATF].

Based on Bithumb’s decision which took effect on May 27th, existing user accounts from these countries will be disabled on June 21st. Furthermore, new users from these 11 countries will not be accepted.

Additionally, they plan to introduce a mobile verification system to prevent users from making use of a false identity. Based on the residence verification process, users who have not registered their residence cannot use the service from 1st June.

The press release stated:

“….it has created a systematic framework for prevention of damage caused by accidents such as voice phishing and rapid recovery of damages by making provisions for the prevention of telecommunication financial fraud damage by itself”

Bithumb will ensure that their customers’ assets are protected and there is complete transparency in the transactions by building an anti-money laundering system and customer awareness system.

Bithumb’s spokesperson said:

“We will strictly enforce our own rules and protect our investors while we actively cooperate with local authorities.”

He further added:

“We will lead the standard of the World Currency Codex Exchange by self-regulation ahead of schedule,”

Chillypill, a Redditor commented:

“….This goes against exactly what crypto is about: a open market economy to everyone in the world.”

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