South Korea’s Largest Crypto Exchange Blocks Trades From 11 Countries

May 28, 2018 at 20:59

Bithumb, South Korea’s largest crypto exchange, toughens its regulation against monetary laundering by banning trades from unverified users and from 11 countries starting next month.

In a statement posted on its website on Monday, the exchange said it will block all transactions of residents of non-cooperative countries (NCCT) which include North Korea, Iran, Ethiopia, Iraq, Serbia, Sri Lanka, Trinidad and Tobago, Tunisia, Vanuatu, Yemen and Syria.

NCCT are countries where anti-money laundering efforts have been insufficient as designated by the Financial Action Task Force on Money Laundering.

Starting June 21, NCCT users will be prevented from using the exchange to stop its usage in national terrorist or criminal funding.

Bithumb will also further its identity verification process by requiring mobile users to go through an authentication that give their identity and address starting June 1.

The exchange said it has also created a systematic framework to prevent voice phishing and “rapid recovery of damage by making provisions for the prevention of telecommunication fraud.”

This is in compliance with the revised Regulations on the Prevention of Money Laundering Act in December last year.

The move also reflects the recommendation made by government authorities and by the Korea Blockchain Association.

By strengthening its rules on anti-money laundering (AML), Bithumb said it creates a transparent trading environment.

“We will strictly enforce our own rules and protect our investors, and we will actively cooperate with the authorities. We will lead the standards of the Worldwide Codex Exchange with autonomous regulation ahead of schedule,” a company spokesperson said.

Moving forward, the exchange said it will continue to build customer awareness system and anti-money laundering system based on global standards for the protection of consumers.