One of the major cryptocurrency exchanges from South Korea, Bithumb has made an announcement in regards to regulatory compliance. The exchange has announced that it is going to introduce a new regulatory requirement that every foreign user of Bithumb must adhere to.
The exchange has announced that it would be mandatory for the foreign users of the exchange to fully adhere to the Know Your Customer (KYC) policy process. The exchange has revealed that as per the new process for foreigners, they must complete a KYC verification that will be phones based.
The exchange has released clear instructions and notices that if any foreign user fails to comply with the new policy, they will be banned from using the exchange.
One of the local media sources Pulse has shared information in regards to the latest announcement made by Bithumb. According to the latest announcement, the users not from South Korea but using the exchange will be subject to go through the KYC verification for mobile.
The exchange has announced that the new implementation will not go into effect right away. However, they are planning to launch it within the running year. The officials have revealed that for now, they are deciding on the implementation of the new KYC policy. Once all the executives are unanimous on the implementation date, they will make an official announcement.
The exchange has announced that once the new policy has been introduced, foreign users will not be able to use the exchange’s platform unless they go through the verification process.
If the users do not go through the verification process or fail the mobile-based KYC verification process, they will not be allowed to use the platform.
The reason behind the implementation of stricter policies is the regulatory pressure on local cryptocurrency exchanges. As cases related to misuse of decentralization are constantly rising, leading to an abundance of money laundering cases, the regulators are growing stricter on local crypto exchanges.
The South Korean regulatory authorities are introduced stricter regulations related to Know-Your-Customer (KYC) and Anti-Money Laundering (AML) policies. Strict adherence to regulations is one of the major requirements that the exchanges would need to meet in order to be eligible to operate in the country.
Just recently, the Seoul Central Customs shared a report, where it revealed tracking down several money-laundering cases. The report was reportedly shared by the particular department on July 8, 2021. In the report, it was mentioned that they have tracked down a total of 33 people, involved in mass money-laundering activities.
The Seoul Central Customers revealed that a total of $1.48 billion have been laundered out of the country through cryptocurrencies to foreigners who are also users of the exchange.