The Bithumb exchange is now accepting new registrations from investors. The exchange, that is based in South Korea, had halted all new registrations from investors following a ban on virtual trading accounts from the South Korean Financial Services Commission (FSC). The ban issued at the beginning of the year required exchanges based in the country to come up with real-name verification procedures for its customers, through the country’s own banks. Customers who wished to trade in any of the exchanges were required to open real-name accounts with some of the locally based banks that their exchanges traded in. The ruling that was made in late December last year, banned the issuing of anonymous accounts to cryptocurrency exchanges by South Korean based banks. The ban came into effect on 30th January this year.
Growth Of Crypto Trading In South Korea
Cryptocurrency trading in South Korea has seen tremendous growth. The country has become one of the crypto trading hubs around the globe. In a bid to protect investors, the government has drawn up measures to regulate the trade. The most recent is the FSC ban. However, stricter measures had been expected last year after the finance minister announced that the country would ban cryptocurrency trading imminently. This was met with public outcry and an online petition that opposed the ban, which amassed more than 200,000 signatures in a very short space of time. The government later issued a statement assuring the citizens that the ban would not happen. Bithumb is an exchange right in the middle of these developments.
The exchange is the biggest in the South Korean market, and its customer base has continued to grow. It accounts for more than 80% of the South Korean Ether-won trade. Millions of customers trade on the exchange platform daily. The exchange has almost 100,000 users trading on the exchange per minute.
Bithumb Follows The Rules
In a bid to continue providing its customers with the best services, Bithumb has integrated the mandated Know Your Customer procedures (KYC), and customers can now open their accounts using Nonghyup bank. In a statement on its homepage, the homepage further promised to enable KYC integration with Shinhan Bank as they are pursuing this partnership. The integration means that investors who wish to trade using the exchange can now do so without going against government rules.
Other Small Exchanges Forced To Close Down
Despite the successful move by Bithumb, some smaller exchanges are finding it hard to transition to the new real-name verification system. Some smaller exchanges such as Coinpia have been forced to stop trading due to failure to comply with the new rules. The reason behind this is that the exchanges are finding it hard to integrate the verification process with the local banks. If earlier reports from Yonhap, the Korean news agency hold ground, the local banks were reported as being likely to reject the integration with small exchanges such as Coinpia, and only allow integration with the larger exchanges such as Bithumb. However, for the delight of the many Bithumb customers, their KYC integration and acceptance of new customers means that it is back to business as usual.
So what do you think about the acceptance of new users again by Bithumb? Let us know your take on the issue in the comments section below.