Around the globe, regulators are applying pressure to cryptocurrency exchanges to do a better job establishing, overseeing, and enforcing know-your-customer (KYC) and anti-money laundering (AML) polices. No region has been stricter than South Korea, as key regulators in the country are keen on standardizing the crypto market as soon as possible.
As a result, Bithumb, South Korea’s largest cryptocurrency exchange, announced via a press release that it has banned the use of its exchange by residents across 11 different countries.
The 11 countries listed are considered “high-risk” areas according to the Non-Cooperative Countries and Territories Initiative established back in the 1980s by the Financial Action Task Force on Money Laundering. The countries include: Iran, Syria, Iraq, North Korea, Sri Lanka, Trinidad and Tobago, Ethiopia, Tunisia, Vanuatu, Bosnia and Herzegovina, and Yemen.
Existing users from these locations with accounts on Bithumb will be disabled on June 21, giving investors a little more than three weeks to take action.
Bithumb also plans to introduce a new mobile verification system to deter users from attempting to access the platform from a banned country using a false identity. Users who have not verified their residence before June 1st will be blocked from using the platform.
A spokesperson for Bithumb asserts that the exchange will “strictly enforce our own rules and protect our investors while we actively cooperate with local authorities.”