Mobile KYC to be mandated for Bithumb users

TL;DR Breakdown

• Mobile KYC or Know Your Customer is now a mandatory requirement.
• Bithumb has decided to stop offering its services to foreigners in South Koreans with no mobile KYC.
• The date is yet to be announced for the implementation of the decision.

Crypto investment has drawn attention from a lot of regulatory authorities who are taking steps to prevent tax evasion and crypto scams. South Korean authorities are known for being one of the first countries to pass crypto-usage laws. The Anti-Money Laundering Bill recently implemented in South Korea is responsible for new rules imposed by crypto exchanges.

A popular South Korean crypto exchange called Bithumb will make it mandatory for crypto investors not from South Korea to complete their mobile KYC. The date for the implementation of this decision is yet to be released. The decision is made to comply with the rules as mentioned in the government’s Bill as reported by a local firm, Pulse.

Mobile KYC made necessary due to surge in scams

The Seoul Central Customs reported that as many as 33 people in the nation were involved in crypto scams and illegal crypto transfers. These transactions were worth around a whopping 1.69 trillion Korean won ($1.48 billion).

“Foreigners residing in Korea who cannot process identification with mobile phones cannot use the service.”

The notice released by the crypto exchange, Bithumb

Media houses also noticed that previously, the crypto exchange had increased surveillance of those users who were signing up on the platform from areas that came under the “high-risk jurisdiction.” The users from these areas have been considered to engage more in illicit activities, and as a result, a number of restrictions were imposed on the accounts of users from such areas.

A lot is going on in the crypto world as we are witnessing significantly increased adoption worldwide. Recently, Binance was seen putting a stop to its stock tokens and decreasing the withdrawal and deposit limits for people who did not complete full verification on the platform.

A safer world for crypto investors cannot be created without such regulations, and popular traders consider this a positive sign.