According to Korea’s news outlet Pulse report, International users of popular South Korean exchange Bithumb will now be required to undergo mobile KYC verification in order to make use of the exchange. The news outlet reported the news of the new KYC requirement that is expected to become effective sometime this year. South Korea has been tightening crypto regulations.
Bithumb bans foreigners who do not comply with the Know Your Customer verification.
The notice of the Korean crypto exchange platform read, “The mandatory ID verification rule that may be effective within this year will be applied to foreign nationals who reside in Korea, and the exact effective date will be announced later.” The notice by Bithumb effectively bans foreigners who do not undergo the Know Your Customer verification on their smartphones and comes on the back of the country’s commitment to tightening their Anti-Money-Laundering rules. South Korean financial regulator, the Korean Financial Service Commission, has recently created a new “crypto-asset monitoring bureau,” which will be responsible for monitoring suspicious financial activity and transactions and deciding the extension of cryptocurrency operators’ licenses.
Crypto adoption is increasing in South Korea.
The increase in scrutiny of cryptocurrencies is the result of an attempt to better regulate the digital currency, which is increasing in adoption in the South Korean nation. An official from the FSC commented on the newly created crypto bureau: “The FSC’s decision for the creation of an independent bureau inside KFIU with increased personnel is aimed at checking and monitoring cryptocurrency-related financial activity and preventing potential money laundering.” Bithumb has recently appointed a new compliance monitoring officer, as the Korea Times reports, to strengthen the internal control system of the exchange, including internal and external inspection and investigation activities.