The administration of the South Korean cryptocurrency exchange Bithumb has decided to tighten control over investors as part of a plan to combat money laundering.
In particular, the trading platform limited the possibilities of accounts that are registered in those jurisdictions where there are insufficiently strict measures to combat the legalization of criminal proceeds.
At the moment, the Bithumb exchange has about a million daily active users. The average daily volume of transactions on the platform reaches $ 6.2 million.
In 2020, the exchange had problems with the Korean authorities. Law enforcement agencies suspected the trading platform of involvement in fraudulent schemes.
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According to the administration's plan, the new user control regime will increase the transparency of trading and the effectiveness of the exchange's policy in the field of combating money laundering.
Bithumb didn't stop at just one limitation of account options. She highlighted two lists of countries whose legislation does not meet the requirements of the Anti-Money Laundering Action Task Force (FATF).
Users who signed up from the first list (Myanmar, Barbados, Iceland, and 15 more countries) will face difficulties in making transactions.
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Users from the second list of countries (Iran and North Korea) will be frozen altogether, and their new accounts will be canceled.