A Tough Stand Against Foreign Transactions
In a wave of regulatory changes, Bithumb, South Korea’s popular cryptocurrency exchange, has decided to lay down the law for its foreign users. Starting this year (though the exact date is still under wraps), all non-Korean individuals wishing to trade on Bithumb will need to undergo mobile phone-based Know Your Customer (KYC) verification. It’s like getting a bouncer to check your ID before letting you into the nightclub of digital currency!
The Reason Behind the Crackdown
This new mandate is not just a random decision plucked from thin air. It ties into a larger string of government efforts aimed at tightening Anti-Money Laundering (AML) protocols across the nation. Just recently, a government report revealed that the authorities netted 33 individuals involved in illicit overseas crypto dealings surging to a whopping 1.69 trillion Korean won (approximately $1.48 billion). Talk about a financial fishing expedition!
Impact on Foreigners: What You Need to Know
For anyone living in Korea but not holding a Korean citizenship, this rule could feel like being handed an eviction notice after a long stay at an Airbnb. Basically, if you can’t verify your identity through a mobile device, Bithumb will have no option but to lock you out of your account. Bithumb has advised users to withdraw their assets if they can’t comply by 2021, when these changes hit full throttle.
Cracking Down on High-Risk Countries
This isn’t the first time Bithumb has tightened its grip on foreign accounts. Previously, the exchange set limitations on users coming from ‘high-risk jurisdictions’ – those on the Financial Action Task Force’s radar, and yes, countries like Myanmar and North Korea are already blacklisted. It seems that if your home address is on a watchlist, crypto trading might not be your best hobby.
Conclusion: The Future of Crypto Exchanges in Korea
As Bithumb steps up its KYC and AML measures, the ripple effects are sure to be felt throughout the Korean cryptocurrency landscape. Expect other exchanges to follow suit, making it harder for sketchy business to sneak by the regulators. Who knew crypto trading could come with such stringent pre-requisites? One might say it’s like the ultimate gatekeeping strategy—no ID, no crypto!
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