Bithumb’s tougher KYC procedures align with South Korea’s recently toughened anti-money laundering rules for overseas customers of cryptocurrency exchanges.
Bithumb, a South Korean cryptocurrency exchange, is apparently banning foreigners who have not passed phone-based Know Your Customer (KYC) verification.
According to Pulse’s local coverage, non-Koreans who use the Bithumb cryptocurrency exchange will need to undergo mandatory smartphone verification. While the rule is expected to take effect this year, the precise date of implementation of the new KYC requirement has not been revealed. The Korean Herald reported, citing Bithumb’s notice:
“Foreigners residing in Korea who cannot process identification with mobile phones cannot use the service.”
Bithumb’s plan to tighten its Know Your Customer (KYC) criteria aligns with the country’s recently revised Anti-Money Laundering (AML) rules. According to a July 8 report, Seoul Central Customs apprehended 33 individuals who engaged in illicit offshore cryptocurrency transactions totaling 1.69 trillion Korean won ($1.48 billion).
Bithumb previously put limits on accounts opened in “high-risk jurisdictions” and on accounts opened in countries on the Financial Action Task Force’s “enhanced surveillance” list. According to the Korean Herald, Bithumb has also requested that impacted users withdraw their funds if they are unable to comply “by 2021 when customer due diligence becomes necessary.”
Bithumb did not immediately respond to a request for comment from Cointelegraph. Since 2020, the Korean authorities have implemented a series of measures aimed at reducing unlawful cryptocurrency transactions, including mandating banks to beef up their monitoring of cryptocurrency transactions.
Recently, cryptocurrency exchanges such as Bithumb have implemented additional procedures to enforce anti-money laundering efforts, including enhanced KYC checks and trading limitations. Myanmar, Barbados, Iceland, Iran, North Korea, and 15 more nations have already been barred from opening accounts.
Also Read: India’s Cryptocurrency Bill May Classify Crypto As A Commodity
Wallets