Bithumb Suspended Account Registration Due To Lack Of Agreement With Bank
South Korean cryptocurrency exchange Bithumb has suspended the registration of accounts linked to verified bank accounts due to the fact that it could not renew the contract with the bank in accordance with the rules that came into force this year. Business Korea writes about it.
From 1 August one of largest exchanges in South Korea ceases to open virtual accounts for its users due to the lack of a banking partner. The limitation will not affect customers who already have virtual accounts on the exchange that were used to deposit and withdraw assets through bank accounts linked to them.
South Korean regulators banned anonymous trading through virtual bank accounts in January this year. After that, six banks in the country began to open accounts for traders, verified using their real names, which are linked to accounts on exchanges registered under the same names..
In addition, cryptocurrency exchanges are required to renew their agreements with banks every 6 months..
Bithumb was supported by Shinhan Bank, but their agreement was canceled. Bithumb approached Nonghyup Bank to enter into a new partnership, but was refused, according to today’s post..
The bank’s decision is due to its doubts about measures to ensure cybersecurity on the exchange and the protection of clients’ assets. Bithumb was hacked in June when about $ 30 million in cryptocurrencies were stolen from its hot wallet.
“We decided not to enter into a contract because Bithumb continues to experience challenges in protecting customers and information, as well as preventing money laundering,” said a spokesman for Nonghyup Bank..
Thus, Bithumb turned out to be the only major Korean exchange that did not have an agreement with a bank to open new accounts. Meanwhile, Coinone has renewed its contract with Nonghyup Bank and Upbit continues to partner with the Industrial Bank of Korea. Korbit also continues to work with Shinhan Bank.
“We plan to smooth out certain legal aspects and start opening virtual accounts in the near future,” a Bithumb representative said, adding that they were able to reach a “consensus” with Nonghyup Bank.
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