South Korean Crypto Exchange Bithumb Will Block Unregistered Wallets

Bithumb, one of South Korea's largest crypto exchange by trading volume, will stop accepting wallet addresses that haven't been properly registered with the exchange as it enforces the "travel rule," according to an official blog post on Monday.

The travel rule, recommended by the intergovernmental Financial Action Task Force, requires exchanges to collect data about transactions and share them with authorities when they exceed a certain threshold.
Starting Jan. 27, Bithumb users will not be able to withdraw or pre-register using wallets such as MetaMask that are not tied to a name, mobile phone number or email address registered, CoinDesk Korea reported.
Last week, Bithumb said users would have to go through a face-to-face interview to sign up on the exchange using such wallets.
South Korean media like Money Today reported that the change of mind came as a result of pressure from NH Nonghyup bank. Crypto exchange Coinone, which also works with NH Nonghyup, announced a similar measure which started on Jan. 24.
Seoul requires all exchanges to partner with banks for real-name bank accounts in order to operate in the country.
The two exchanges are working on a whitelist of users who have registered their data, according to media reports.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

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.

Eliza Gkritsi

Eliza Gkritsi is CoinDesk's crypto mining reporter.

Follow @egreechee on Twitter

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.