Korean Bithumb crypto currency exchange has suspended the opening of new trading accounts. The order came into force yesterday; Business Korea reports that this is due to the completion of the contract of the exchange with its servicing Bank account.
Other publication Etoday, said that customers who already have accounts Bithumb can still Deposit and withdraw funds, but only for a month and only in Korean won. Then, in September, will end the deferment of renewal of service contract with the exchange, NH Nonghyup Bank will be finally terminated. According to Business Korea, this will greatly complicate the work of traders with their accounts.
The reason for the refusal of NH Nonghyup Bank in the extension of the contract associated with the identification procedure of the participants of trading on cryptocurrency exchanges in South Korea. By law, virtual accounts, individuals must be registered using real names: so, the government hopes to increase the transparency of transactions with cryptocurrencies and counter money laundering. In turn, stock exchanges are required to update their agreements with banks every six months also in the framework of anti-money laundering measures and the disposal of the authorities.
The representative of the Nonghyup Bank in Korea Business reviews said:
“We decided not to renew the contract because Bithumb still has problems with protecting users and their data, as well as the prevention of money laundering”.
The publication added that “in light of recent hacker attacks, which resulted in the market losing 18.9 billion won ($of 16.88 million), the Bank is convinced of the vulnerability of data processing systems Bithumb”.
Bithumb previously used the services of Shinhan Bank, however, the Agency had terminated the contract with the trading platform due to security incidents.
The representative Bithumb told Business Korea that the parties come to an agreement:
“We have reached consensus with Nonghyup Bank in respect of contract renewal. We plan to resolve our differences regarding some of the legal language, and soon to resume the registration of new virtual accounts.”
In addition Bithumb banking services on terms deanonimizatsii traders use Upbit, Coinone and Korbit. Other platforms have to work with the corporate accounts practice, which the South Korean authorities eventually want to completely eliminate.
To get access to banking service for individual accounts, the four largest Korean exchanges had to take significant AML / CFT measures. So, in may Bithumb reduced the limit of withdrawal for anonymous bidders.
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