Crypto Exchange Bithumb to Again Start Accepting User Registrations
Bithumb, one of the leading cryptocurrency exchanges in South Korea, has decided to renew its contract with South Korea’s Nonghyup Bank – a well thought out move that will allow the exchange to once more accept new user registrations.
Bithumb and Nonghyup Bank are planning to sign the contract on Thursday, August 30, in order to allow the firm assign new real name virtual accounts to crypto traders on its platform, local news agency Yonhap reports Wednesday, August 29.
Earlier in July, the firm announced the suspension of its new user registration service, citing improvement in the service process as the reason. Some sources at the time claimed that the halt on new account registrations was forced upon Bithumb because the bank was insisting on these changes following the firm’s $31 million Hack a couple of months ago.
Currently, banks in the country are allowed to provide account services for cryptocurrency exchanges to deposit assets belonging to their users on their behalf. But, every virtual account dedicated to a specific trader within the firm’s deposit account must be paired with the trader’s verified identity to make it easier for banks to monitor all the transactions for anti-money laundering purposes.
The country’s regulations demand separation of user accounts from company accounts that, for example, store a firm’s own operating funds.
Following the suspension of new account registration service, 24-hour trading volume on the exchange took a hit and dropped almost 40% within 3 days, from around $350 mln on July 31 to $200 mln on August 3.
24-hour trading volume further dropped to around $71.7 mln by August 23, but data from CoinMarketCap shows that daily trading volume rebounded to over $344 mln at press time.