Bithumb, Southkorea’s largest cryptocurrency exchange made an official announcement on Sunday that it will ban trading activities in 11 different countries around the world from using its services as a part of a new anti-money laundering policy (AML). They had stopped all the new applications from the banning countries. Also, all currently working accounts will be banned until June 21.
The Bithumb had took this decision after its strict verification processes, revised its internal regulations as they are tightening the strings on cryptocurrency trading. The foriegn clients will have to face the a stricter verification process to use its services after the implementation.
Bithumb explains its’ decision in an announcement, saying:
“NCCT users will be prevented from using the exchange so that cryptocurrency is not used to fund international terrorism,”
Bithumb stated that they will be banning all the trading services of residents of countries which are marked as high-risk jurisdictions by to the Non-Cooperative Countries and Territories (NCCT) blacklist and ensure its faith in international anti-money laundering norms. They had decided to follow the policy suggested by the Korean Blockchain Association by stating in the website that it “will cooperate with the government”.
Financial Action Task Force (FATF), an international organization in charge of enforcing global monetary laws for not complying with international money laundering, terrorist financing, and other norms had listed these eleven countries including Bosnia and Herzegovina, Ethiopia, Syria, Iran, Iraq, Sri Lanka, Trinidad and Tobago, Tunisia, Vanuatu, and Yemen.
With this ban of the eleven countries the new users or clients will not be accepted in the platform and old accounts will be disabled on June the 21st. The Bithumb also announced that from next month onward the new users will have to clear the mobile verification processes which will be strict to tackle falsified personal information and residential address.