Bithumb crypto-exchange moves to ban foreigners with no ID verification within the year

Bithumb, a major cryptocurrency exchange in South Korea, announced on Thursday, Sept. 2, that it will be banning foreigners that will not be able to present any ID that will verify their identities via mobile phones. This means that they will not be given access to the platform unless they can present an ID.

According to The Korea Herald, Bithumb issued the rule as it prepares to file its own registration with the country’s financial authorities, the Financial Services Commission, by Sept. 24 which is the deadline. The company is doing this to comply with the revised Act on Reporting and Using Specified Financial Transaction Information’s order for cryptocurrency exchanges to register or be ordered to halt their operations.

With the announcement, foreigners, regardless of where they live, will not be able to use Bithumb until they can provide ID verification. It was added that the firm already stopped granting access to foreign users with no alien registration cards. They cannot even register to the platform so they really need an ID if they would like to use the crypto exchange’s services.

“Foreigners residing in Korea who cannot process identification with mobile phones cannot use the service,” part of the company’s notice reads. “Affected users should withdraw their assets in advance, within 2021 when customer due diligence becomes mandatory.”

Pulse News further reported that Bithumb is working to comply with the regulations as South Korea begins tightening regulations on anti-money laundering. As part of this move, ID verification has become mandatory especially for non-Koreans residing in the country.

Earlier this week, Bithumb has formed a company with Korbit and Coinone to combat anti-money laundering. They have set up COnnect Digital Exchanges or CODE as a joint venture to create a “travel rule” solution.

The three leading Korean cryptocurrency exchanges have agreed to join forces so they can take steps together to help them follow the Financial Action Task Force’s (FATF) crypto “travel rule” system’s policy that sets a standard for digital asset service worldwide so that money laundering could be prevented. This system will push the companies to gather data of senders and receivers of all the transactions made.