With the main intention to prevent money laundering and illegal activities, South Korea’s biggest crypto exchange, Bithumb has banned crypto trading in 11 countries. The Bithumb has decided to impose ban on North Korea, Iran, Iraq, Sri Lanka and other seven countries scrutinized by the NCCT Initiative.
Bithumb holds the world’s sixth and first in South Korea in terms of trading volume. In its latest decision announced on May 27th, 2018, Bithumb will be imposing ban on countries monitoring by NCCT initiative. Since, the regulations intend to prevent its platform that is being used to money laundering, financial terror or illegal activities.
Further, as the result, the Bithumb will not accept the users from 11 countries listed as NCCT. However, by June 21, 2018 it is expected to disable the existing users accounts from those particular countries.
According to FATF (Financial Action Task Force), the countries which are listed under NCCT (Non-Cooperative Countries and Territories) are not capable to restrict money laundering and utilizes funds over illegal activities. However, the NCCT listed countries are with insufficient policies and regulations.
Further, Bithumb can easily eliminate any financial aspirants or international regulators concerning over money laundering using crypto trading.
Additionally, within few days development team of Bithumb to request international users to undergo mobile verification process. However, it ensures that users are not providing fake information about their residential addresses and also personal info.
Bithumb spokesperson said,
“The Bithumb team will voluntarily impose strict policies and cooperate closely with local financial authorities. Thus to increase the transparency in the cryptocurrency market and protect investors. With progressive voluntary policies, Bithumb will improve the global standard of cryptocurrency exchanges”.
However, imposing ban on NCCT regions like North Korea, Iran, Iraq, Sri Lanka has proved that Bithumb’s long-term vision is to remain acquiescent and with clarity in crypto market.
Similar, the same approach was taken by Japanese Government stating that three anonymous cryptocurrencies: Zcash, Monero and Dash have been laundered hundreds of millions of dollars. However, the government restricted the usage of those three cryptocurrencies by asking local crypto exchanges to de-list their accounts.
Mainichi Shimbun, Japan’s oldest and most influential newspaper reported that,
“It should be seriously discussed as to whether any registered cryptocurrency exchange should be allowed to use such currencies. It’s a typical money laundering scheme. In a way, I’m not surprised. If you are going to do something illegal, then everyone knows to use the ‘three anonymous siblings”.