Bithumb Users Cannot Withdraw Their Cryptocurrencies to Unverified Private Wallets

Bithumb – an exchange based in South Korea – will prohibit the consumers thereof from withdrawing their crypto holdings to the private wallets that are unverified. A similar policy has been implemented by Coinone as well as the other well-known exchanges like Korbit and Upbit during the last month.

The latest policy points out that consumers may just register the private wallets thereof. To register a wallet, the consumers are required to perform an additional step called know-your-customer for identity verification of the customers. The withdrawals targeted towards non-native or domestic centralized exchanges through a strict KYC process like that utilized by Binance.US, Bybit, Blockchain.com, Bitstamp, and Kraken, would be liable to comply with the respective policy.

It was reported by a native news outlet named Money Today that Nonghyup Bank – a partner of the company – put up pressure on it to modify the policy thereof and fulfill the requirements of FATF Travel Rule.

The respective travel rule is developed to permit the financial organizations to be in knowledge with the identity of their consumers (including receivers and senders) sending funds across the boundaries of the countries. It was strongly demanded by the bank that the entirety of those personal wallets, that do not fulfill the KYC requirement, should be blocked.

MyEtherWallet, MetaMask, and other such wallets are included in them. A crypto exchange in South Korea, that provides the trading pairs of KRW (Korean Won), is needed for any of the domestic partners (banks) for the registration of the bank accounts having real names of the consumers.

The partner banks have a considerable effect on the policies of the exchange, like in the matter of Coinone, Bithumb, and Nonghyup. The bank accounts having the real names guarantee that the user performing the withdrawals out of the exchange is the one who trades crypto on its venue. The respective policy assists the exchanges to act upon the Travel Rule till the deadline of 25th March.

Up till now, the exchanges Korbit and Upbit have not announced any policy changes dealing with the crypto. It would be demanded from the exchanges to modify their policies till the above-mentioned deadline because it has been deemed necessary by the government of South Korea for the entirety of the exchanges.

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