South Korean cryptocurrency exchange platform Bithumb strengthens its approach to money laundering with a number of new measures that include trade restrictions, stricter KYC checks and specialized blockchain analysis solutions.
The popular exchange, which serves an average of 1 million users daily and a daily transaction volume of $ 5-7 billion dollars ($ 4.4-6.2 million), was turbulent in 2020 due to the police investigation into allegations of fraud.
After a series of negotiations with several companies about a possible acquisition, large gaming conglomerate Nexon denied that it planned to buy Bithumb earlier this year. The Korean Herald newspaper quoted new rumors today that GBMorgan and CME Group can now consider buying most of the shares on the stock exchange.
A local commentator, quoted by The Herald, suggested that Bithumb boss Lee Jong Hoon could wait a bit until the company’s stock market hits “at least 1 trillion won,” a figure similar to another major Korean platform. Upbit.
Bithumb’s new stringent anti-money laundering system includes restrictions on accounts registered ashore on the FATF’s “growing watch list” in order not to take action to combat economic crime, in addition to those called “high-risk courts.”
The countries on the first list include Myanmar, Barbados, Iceland and 15 other countries, the latter being limited to two countries: Iran and the Democratic People’s Republic of Korea. All accounts in these areas will be frozen and new accounts will be blocked.
In addition, Bithumb is collaborating with Octa Solution to implement money laundering tools for cryptocurrencies, as well as use solutions developed by Chainalysis and Dow Jones Risk & Compliance.
In other domestic cryptocurrency news, the South Korean Ministry of Economy and Finance recently announced plans to impose a 20% tax on bitcoin (BTC) and cryptocurrency surpluses from January 1, 2022. A country-specific review of the survey is expected from March. … The Financial Transactions Act also stipulates that cryptocurrency exchanges are subject to new regulatory obligations, including requirements for money laundering.