South Korean cryptocurrency exchange Bithumb has stopped serving traders from 21 countries due to the tightening of anti-money laundering measures under the FATF directive.
According to local media reports, Bithumb has banned traders from 21 countries from opening new accounts and froze existing user accounts. These actions were implemented in order to comply with the requirements of the Financial Action Task Force on Money Laundering (FATF), as well as to improve investor protection and increase the transparency of the cryptocurrency market.
These measures affected traders from countries included in the FATF “enhanced monitoring” list for inaction in the fight against financial crimes, as well as countries that are considered to be high-risk jurisdictions. Iran and North Korea were blacklisted by the FATF for supporting terrorist financing and money laundering. Another 19 states, including Yemen, Syria, Pakistan and Botswana, are placed on the gray list because they are considered a safe base for such activities.
Among other things, the exchange will tighten the requirements for the KYC procedure. To this end, Bithumb, together with Octa Solution, developed tools to combat money laundering through cryptocurrencies. Bithumb also leverages solutions from analyst firm Chainalysis and risk management firm Dow Jones Risk & Compliance.
Earlier this year, it was reported that gaming company Nexon, a subsidiary of South Korean investment firm NXC, was ready to buy the Bithumb exchange for $ 460 million. A Nexon employee later denied these claims. Meanwhile, rumors of the sale of Bithumb shares have resumed – US investment bank JP Morgan and Chicago Stock Exchange operator CME Group are in talks to acquire a controlling stake in Bithumb.
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