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South Koreaâs largest cryptocurrency exchange Bithumb has announced that it will block trading in 11 countries as part of its revised internal regulations aimed to prevent money laundering using its system. Foreign users will also need to undergo a stricter verification process.
Also read:Â Yahoo! Japan Confirms Entrance Into the Crypto Space
Preventing Money Laundering
Bithumb announced on Sunday that its internal regulations have been revised in order to prevent money laundering activities using its system, according to local media. Business Korea elaborated:
With growing concerns over money laundering through cryptocurrency trading, Bithumb, South Koreaâs biggest cryptocurrency exchange, will ban digital asset trading with investors in North Korea, Iran, Iraq, and eight other countries that are considered as high-risk jurisdictions by the Non-Cooperative Countries and Territories (NCCT) Initiative.
At the time of this writing, Bithumbâs 24-hour trading volume has overtaken Upbitâs, standing at about $250.41 million. The Kakao-backed exchange Upbitâs trading volume for the same time period is approximately $235.1 million, according to Coinmarketcap.
To prevent the inflow of funds relating to âinternational terrorism and crime,â users from NCCT countries âshall be blocked,â Bithumb wrote, adding that new members from these countries will not be accepted and existing members will be blocked from the 21st.
Bithumb says it is self-enforcing these strict rules to foster the transparent cryptocurrency market and investor protection. âWe will cooperate with the governmentâ and follow self-regulatory measures based on the policies introduced by the Korean Blockchain Association, the exchange emphasized. The Korean Blockchain Association is spearheading self-regulation among crypto exchanges in the country. Bithumbâs revised internal regulations reflect âthe governmentâs recommendations and the Korean Blockchain Associationâs recommendations,â Korea Economic Daily elaborated.
Blocking 11 Countries
The Financial Action Task Force (FATF) is an intergovernmental organization on the initiative of the G7 to develop policies to combat money laundering.
The NCCT are countries the FATF has ârecognized as regions with insufficient policies and regulations to restrict money laundering and the utilization of various forms of money to finance illegal operations, including North Korea, Iran, Iraq and Sri Lanka,â Business Korea described.
According to Bithumbâs website, the other countries are Serbia, Ethiopia, Syria, Trinidad and Tobago, Tunisia, Vanuatu, and Yemen.
âThe 11 countries monitored by the NCCT Initiativeâ will be banned, the news outlet reiterated, noting that Bithumb made this decision âto prevent its infrastructure and platform from being used to launder money and any international finance terror or criminal activities.â The publication added:
Bithumb will soon request foreign users to endure a mobile verification process to ensure users cannot deceive the platform by falsifying personal information and residential address starting from next month.
What do you think of Bithumbâs revised rules? Let us know in the comments section below.
Images courtesy of Shutterstock, Al Monitor, and Bithumb.
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