South Korean crypto exchange Bithumb is set to mandate ID verification from foreign users in a bid to tighten its know-your-customer (KYC) policy in the face of regulatory scrutiny.
- Bithumb will prohibit access to its platform for non-Korean nationals who fail to verify their identity with a mobile phone, Pulse News reported Thursday.
- The policy is expected to take effect within the year with an exact date to be announced later.
- South Korea’s Financial Services Commission requires all crypto exchanges to register with its Financial Intelligence Unit by Sept. 24. Approval is contingent on meeting required standards relating to KYC and anti-money laundering (AML) systems and policies.
- Exchanges that fall short risk having their websites blocked by the authorities.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.