South Korea’s largest exchange Bithumb will no longer be accepting new users and removing existing ones from 11 countries presently under investigation by the Non-Cooperative Countries and Territories (NCCT) Initiative. Countries included on the NCCT list are North Korea, Iran, Iraq and Sri Lanka. This was announced by Bithumb on 27 May and reported by local news outlet Yonhap News on 28 May.
Outlining the move, Bithumb says it is acting as part of “global anti-money laundering efforts”, later adding that “NCCT users will be prevented from using the exchange so that cryptocurrency is not used to fund international terrorism”.
NCCT countries are ones that have been identified by the Financial Action Task Force on Money Laundering (FATF) as being regions which are lacking significant anti-money laundering policies and regulations, as well as their use of these funds for illegal operations.
Bithumb is the largest cryptocurrency exchange in South Korea and fifth largest in the world by trading volume. Taking this stance reveals the intents of the trading giant; to remain compliant not only with the laws and regulations within South Korea but also with that of the global community, reducing the risk of any conflicts with local and international regulators.
Furthermore, to reinforce this, the development team at Bithumb are soon to implement new procedures for foreign users, requiring them to undergo a mobile verification process, preventing users from being able to falsify personal information such as their address.
A Bithumb spokesperson told Yonhap, “The Bithumb team will voluntarily impose strict policies and cooperate closely with local financial authorities to increase the transparency in the cryptocurrency market and protect investors. With progressive voluntary policies, Bithumb will improve the global standard of cryptocurrency exchanges.”
The regulatory wheel is spinning at quite some pace all over the world. Discussions of how to classify cryptocurrencies for purposes of taxation and regulation frequently appear in the news and the recent move by Bithumb is reflective of this crucial period in the industry.
Cryptocurrencies and initial coin offerings are two facets of the blockchain industry that have regularly faced scrutiny from all corners of the globe. India, for example, had previously and very cautiously approached the technology, but is moving toward creating the necessary taxation framework to thwart illicit cryptocurrency activities.
Recently, the European Union introduced know-your-customer regulations to cryptocurrency exchanges, which are a means also to counter crypto-related illegal activities that are often enabled by the anonymous nature of cryptocurrencies. France has been a leading force in the European crypto industry, with positive regulation discussions and taxation law reviews that paint a bright future for the industry.
The latest move by Bithumb should reinforce the efforts made by the global community. The South Korean exchange’s latest action is rather significant considering the country’s increasingly positive blockchain industry developments.
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