Bithumb, the biggest cryptocurrency exchange of South Korea has announced that it will ban its crypto trading services to 11 countries that are considered high-risk jurisdictions by NCCT. In the light of growing concern on the usage of crypto in money laundering and illegal activities, world’s 5th largest exchange by 24-hour trading volume will introduce additional measures as well along with disabling the current accounts on June 21.
Bithumb bans crypto trading in Iran, Iraq, North Korea, Sri Lanka & 7 others
South Korea’s biggest cryptocurrency exchange, Bithumb is banning the trading of digital assets in eleven countries. The current accounts of investors from these countries would be disabled on June 21.
According to Coinmarketcap, Bithumb is the 5th largest crypto exchange on the basis of 24-hour trading volume which is $420 million. Being world’s 5th largest crypto exchange and first in South Korea’s active crypto community, this can be expected to cause a serious effect in the crypto market. Cryptocurrencies have already started tanking.
The growing concern over money laundering through crypto trading has been the reason behind this ban. The exchange is banning the crypto trading in 11 countries that are considered high-risk jurisdictions by the Non-Cooperative Countries and Territories (NCCT) initiative that includes North Korea, Iran, Sri Lanka and Iraq among others.
The exchange itself has announced this ban in order to prevent its platform from being used for illegal activities. Current accounts would be disabled by Bithumb on June 21.
Also, read: Zimbabwe Central Bank a No-Show at Hearing, High Court Lifts Ban on Cryptocurrency Trading
Growing concern on money laundering & terrorism financing in crypto market
The announcement by the exchange has been made on May 27 that it will outright ban trading in these 11 countries. Bithumb will no longer accept new users and disable the accounts of users from these countries.
These NCCT countries are those that the Financial Action Task Force on Money laundering has recognized as regions that have insufficient policies and regulations to restrict the terrorist financing and money laundering.
Apart from the ban, Bithumb is also taking an additional measure from next month under which the exchange will request the foreign users to undergo a mobile verification process. This will ensure that users won’t be providing false personal and address information.
Over the last few months, South Korea has taken a rather strict stance on cryptocurrencies by limiting the issue of new ICOs. Moreover, the country announced a new set of regulations for crypto market as well that restricts the possibilities of money laundering and illegal financing.
Where at one side, countries like South Korea and its resident exchanges like Bithumb are getting stricter, on the other hand, asset management firm Signia in Cape Town are introducing their own crypto exchange.
The exchange that is expected to launch in the third quarter of this year will also provide the user’s access to a number of crypto assets.
Do you think this ban will affect the crypto market negatively? Share your thoughts with us!
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