The fifth largest cryptocurrency trading platform in the world, Bithumb, is excited to announce it will renew its contract with Nonghyup Bank. Following this, users will be able to open new virtual accounts.
The announcement was made by Yonhap on 28 August. According to it, one of the largest crypto exchanges in South Korea, Bithumb, has received approval from its affiliate financial institution to renew the contract, which allows it to issue new virtual accounts to crypto traders.
‘Real-name virtual accounts’ is a condition!
As previously reported by Coindoo, Bithumb has suspended the process of issuing new virtual accounts on 1 August. The reason was the inability to extend the contract with its bank. At that time, the cryptocurrency exchange had a 24-hour trading volume of $ 176,841,469 (according to CoinMarketCap).
Business Korea elaborated:
“Bithumb, one of South Korea’s four biggest cryptocurrency exchanges, will stop issuing new virtual accounts from August as it has failed to renew a contract with NH Nonghyup Bank.”
We would like to remind you that cryptocurrency exchanges are forced by the Korean government to issue real-name virtual accounts in order to ensure a higher level of transparency between platforms and users.
Only four Korean crypto exchanges have the green light
Currently, only four crypto trading platforms are authorized to guarantee real-name accounts, counting Upbit, Bithumb, Coinone, and Korbit. This is due to their systems that comply with Anti-Money Laundering and Know-Your-Customer Standards.
As written by Business Korea, back in January “the government forced cryptocurrency exchanges to renew the service contract with banks every six months in a bid to encourage them to make continuous efforts to prevent money laundering.”
After the first phase was completed in July, Bithumb was the only one whose request was rejected by the partner bank, the reason being the tough period after the company’s attack, which led to a loss of $ 31 million in June.
According to Yonhap’s statement, Bithumb and Nonghyup Bank will extend the contract on 30 August. Following this, users will be free to enjoy the company’s services as before.
At the time of writing, Bithumb records a 24-hour traded volume of $369,561,925.