South Korean Exchange Bithumb Lowers Withdrawal Limit for Unverified User Accounts
Bithumb, one of South Korea’s largest crypto exchanges, has reportedly said it is going to lower withdrawal limit for any user accounts that have not been converted to real name confirmation accounts.
According to MTN, Bithumb has decided to gradually restrict the withdrawal limit for crypto traders that are not using the real-name system, starting June 4. A day prior to this announcement, the exchange confirmed that is going to ban trading in NCCT countries, citing money laundering and other illegal activities as the reason.
In January, the South Korean regulators introduced a real-name system in an attempt to end anonymous crypto trading. However, the conversion to real name confirmation accounts has been pretty low. In early May, only about 30% of the total registered accounts had been converted to real name accounts. In fact, it is still possible to trade cryptocurrencies in South Korea using unverified accounts.
Currently, the exchange has a daily withdrawal limit of 50 million won or USD 46,465, and a monthly limit of 300 million won or USD 278,753, reports the news outlet. However, the withdrawal limit will be reduced considerably to 45 million won or USD 41,795 if users don’t convert their accounts to real-name ones. A Bithumb official was quoted by the publication, explaining:
We have decided to gradually reduce the withdrawal amounts in the Korean won because it is raising concerns that bank accounts for unconverted withdrawals may become a target of various financial crimes.
Bithumb also announced that it has built a first-class budget system and financial information security personnel. Moreover, the exchange claims to be the first in South Korea to comply with all 5-5-7 regulations. Bithumb elaborates:
In May 2018, the current Bithumb’s total employees compared to IT staff ratio is about 21%, and the proportion of IT staff who are responsible for information security is 10%. In addition, about 8% of the annual expenditure budget of Bithumb is used for data protection related activities.