Bithumb Toughens Its Approach To AML Enforcement With New Measures

Bithumb, the South Korean cryptocurrency exchange, is toughening its approach to Anti-Money Laundering (AML) enforcement with a series of new measures that include trading restrictions, stronger Know Your Customer (KYC) checks, and specialized blockchain intelligence solutions.

It has been reported that the popular exchange, which has an estimated average of 1 million daily users and a daily transaction volume worth 5–7 billion ($4.4–6.2 million), had a troubled 2020 beset by police investigations over allegations of fraud.

However, after a series of reported negotiations with various firms for a potential acquisition, major gaming conglomerate Nexon denied it was planning to acquire Bithumb earlier this year. 

The Korean Herald cites fresh rumors that JPMorgan and CME Group may now be considering a purchase of majority shares in the exchange.

The report said that a local commentator cited by the Herald suggests that Lee Jeong-hoon, the chairman of Bithumb, may be biding time until the exchange’s corporate value “reaches 1 trillion won at least,” a figure similar to the reported value of another top Korean platform, Upbit.


It looks like the Korean exchange @BithumbOfficial is beefing up its security protocols. Specific countries are facing tougher requirements on transactions as new AML requirements come online. https://t.co/HTr9hXhHgr — Cointelegraph (@Cointelegraph) March 10, 2021

Likewise, Bithumb’s new, toughened Anti-Money Laundering regime includes placing restrictions on accounts registered in countries that are on the Financial Action Task Force’s “increased monitoring” list for failing to implement measures to combat financial crime, as well as those labeled “high-risk jurisdictions.” Countries on the former list include Myanmar, Barbados, Iceland, and 15 others, with the latter list limited to two: Iran and the Democratic People’s Republic of Korea. All existing accounts in these regions will be frozen and new accounts banned.

Additionally, Bithumb is partnering with Octa Solution to implement its AML tools for crypto assets, as well as using solutions developed by Chainalysis and Dow Jones Risk & Compliance.

Thus, in other domestic cryptocurrency news, South Korea’s Ministry of Economy and Finance has recently announced its plans to implement a 20% tax on Bitcoin (BTC) and cryptocurrency profits starting January 1, 2022.

Source: Cointelegraph | Image: Financial Executives

#CryptoNewsPoint #KYC #DigitalNotice #bithumb #AML

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