Bithumb, one of South Korea’s largest exchanges, will stop serving foreign nationals who have not verified their identity with a local mobile phone number.
According to The Korea Herald, the decision to restrict the use of the Bithumb platform by unverified foreign citizens is due to the exchange preparing to register with the South Korean financial regulator by September 24. This is the deadline for registering cryptocurrency platforms under the revised Law on the Reporting and Use of Certain Financial Transaction Information.
Foreign Bithumb users who do not verify their identity with a phone number registered with Korean mobile operators will not be able to use Bithumb’s services regardless of where they live.
“Foreigners residing in Korea who have not been identified with a mobile phone number will not be able to use the service,” Bithumb notifies.
Bithumb also stated that non-verified users must withdraw assets from the site in advance. The company did not specify the exact date for the introduction of the new ban and noted that this will happen “during 2021, when due diligence of customers will become mandatory.”
A spokesperson for Bithumb confirmed that the company is taking final steps before applying for registration, which includes partnering with local banks to open accounts with mandatory verification.
Recall that at the end of August, the Upbit exchange became the first cryptocurrency platform to register with the South Korean regulator in accordance with the new requirements. The rest of the exchanges must register by September 24th. Earlier, the Korea Financial Intelligence Unit (KFIU) insisted that foreign cryptocurrency exchanges serving South Korean citizens register with the regulator in accordance with the country’s new anti-money laundering laws. The new regulation also applies to local cryptocurrency exchanges.
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