Bithumb changes service policy
In a January 24 announcement Bithumb said it has changed its service policy and temporarily suspended the pre-registration feature. As a result, users will no longer be able to sign up with a personal wallet, and the company will only allow verified wallets. All the exchange's customers should validate their wallets according to the new rules by January 27.The company added that users with unverified addresses will be able to withdraw money "in the same way as before" until that date. Bithumb will also introduce a new KYC identity verification process. Instructions for uploading proof images will remain mandatory for all. At the same time, an accompanying photo of the deposit wallet address and ID card will still be required.
Coinone introduced similar regulation
In late 2021, Coinone, another major cryptocurrency exchange in South Korea, introduced a similar regulation. At that time, the company decided to stop withdrawals of digital assets to unverified external wallets. Coinone had informed its customers that they should comply with the new rules by January 23. Otherwise, unregistered addresses will be discontinued.The travel rule, recommended by the intergovernmental Financial Action Task Force, requires exchanges to collect data on transactions and share it with authorities if they exceed a certain threshold. The government assured that they could face penalties of up to five years in prison or a maximum fine of KRW 50 million (about $42,000) if they continue to operate without making the necessary changes.
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