Bithumb to Lower Withdrawal Limit for Anonymous Traders - Report

The South Korean cryptocurrency exchange is stepping up efforts to prevent financial crimes and comply with regulations

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30 May • 2 min
In Regulation

South Korea’s major cryptocurrency exchange Bithumb will lower the withdrawal limit for anonymous client accounts in an effort to comply with country regulations and prevent financial crimes, local media MTN reported on Monday.

Bithumb currently has a daily withdrawal limit of KRW 50 million (USD 46 100) and a monthly ceiling of KRW 300 million. Starting from June 4, traders who have not changed over to genuine name affirmation accounts will see their daily withdrawal limits lowered to KRW 45 million, the report elaborated.

We have decided to gradually reduce the withdrawal amounts in the Korean won because it is raising concerns that bank accounts for unconverted withdrawals may become a target of various financial crimes, а Bithumb official was quoted as saying.

South Korean regulators enforced the real-name system for crypto accounts at the end of January in order to end the anonymous trading of cryptocurrencies. However, the conversion rate has been low. In early May, only about 30% of traders had switched to real-name accounts. Bithumb estimates 60% of its customers have yet to switch to verified real-name accounts.

The news comes on the heels of Bithumb’s announcement that it is banning trading in 11 countries labeled as high risk by the Non-Cooperative Countries and Territories (NCCT) initiative. As of Monday, the exchange does not accept new clients from North Korea, Bosnia and Herzegovina, Ethiopia, Syria, Iran, Iraq, Sri Lanka, Trinidad and Tobago, Tunisia, Vanuatu, and Yemen. Those who already have accounts will see them disabled by June 21.


Complying with 5-5-7 Regulation

MTN additionally reported on Tuesday that Bithumb has developed a first-class financial information security personnel and budget system.” This makes the exchange the first in the industry to have complied with the provisions of the 5-5-7 Electronic Financial Supervisory Regulation, which recommends that a financial organization’s workforce be comprised of 5% IT specialists, 5% of them dedicated to information security, and 7% of the company’s overall budget be used for privacy.

As of May, Bithumb’s ratio of its IT personnel to total employees is about 21%, the ratio of IT personnel to information protection is about 10%, while 8% of its annual expenditure budget is used for data protection-related activities.