Bithumb’s stricter KYC requirements are available in line with South Korea’s tightened Anti-Money Laundering rules concerning foreign users of crypto exchanges.
South Korean crypto exchange Bithumb has reportedly declared a ban on foreigners who haven’t completed phone-based understand Your client (KYC) verification.
According to native coverage by Pulse, non-Koreans using the Bithumb crypto exchange are going to be subject to necessary mobile verification. whereas the rule is reportedly set to travel into impact this year, the precise date for the new KYC demand is however to be declared. Citing Bithumb’s notice, The Korean Herald reported:
“Foreigners residing in Korea who cannot process identification with mobile phones cannot use the service.”
Bithumb’s move for stricter KYC necessities comes in line with the country’s tightened Anti-Money Laundering (AML) rules. A report from July eight shows that the capital of South Korea Central Customs caterpillar-tracked down thirty three those who completed felonious overseas crypto transactions at 1.69 trillion Korean won ($1.48 billion).
Previously, Bithumb had obligatory restrictions on accounts that signed up from “high-risk jurisdictions” also because the accounts from countries were on the Financial Action Task Force’s “increased monitoring” list.
The Korean Herald additionally reported that Bithumb has asked the affected users to withdraw their assets if they’re unable to obey “within 2021 once client due diligence becomes necessary.”
Bithumb failed to reply to Cointelegraph’s request for comment.
The Korean authorities have taken a series of measures to curb illegal crypto transactions since 2020, requiring banks to strengthen the monitoring of cryptocurrency transactions.
More recently, crypto exchanges as well as Bithumb have introduced new measures like stronger KYC checks and commercialism restrictions to enforce AML efforts.
The country already has banned illegal accounts that originated from Myanmar, Barbados, Iceland, Iran, North Korea and fifteen more countries.