Following on from reports yesterday confirming a trading ban in 11 countries, popular Korean exchange Bithumb have now gone one step further and will begin to reduce the withdrawal limit of users not using the real-name system.
The real-name system was introduced in January this year by the Korean government in an attempt to curb fraudulent activities related to cryptocurrency accounts. It requires users to verify their actual name with the same bank that their cryptocurrency exchange uses. Bithumb trades with Nonghyup and Shinhan Bank in South Korea.
However, reports suggest less than 40% of crypto account users are abiding by the system. In an effort to persuade users to comply with the law, Bithumb is now taking the measure of reducing withdrawal limits. The current daily limit is 50 million won (approx. US$46,465), with the monthly withdrawal limit set at 30 million won.
The initial reduction from next month will be to 45 million won per day. Bithumb has not confirmed how low the reductions will go but have said they will ‘gradually reduce the withdrawal amounts’.
In addition to the new regulation, Bithumb has also announced their compliance with Korea’s 5-5-7 rule. The rule is part of the electronic banking supervisory regulations. It suggests that financial organizations should have 5% of their workforce as IT specialists, 5% information security specialists and 7% of their total budget spent on privacy.
The news follows reports in April this year of Korea’s Financial Services Commission (FSC) inspecting banks to ensure they comply with anti-money laundering guidelines.
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