Bithumb, one of South Korea’s popular trading platforms, will be accepting new users.
This move is coming after the regulations that were planned and imposed by the government over December and January. Bithumb will be opening up registrations to new crypto enthusiasts while following the guidelines given by the government in regards to the aspect of knowing your customer and anti-money laundering.
The cryptocurrency exchange will be accepting new investors from the date of February 9th, 2018. As noted above, following their know your customer policy, investors will have revealed their true identity through a verification process at their accounts at a local bank in South Korea. They are also in the process of working with large banks like Shinhan to integrate their in-depth KYC procedures.
The government of South Korea is making sure to put in place strict guidelines so that there would be a minimization of money laundering and other matters. The government is also making certain that underage traders are not participating in the matter of exchange as well. The FSC has been on watch, looking to see if all exchanges are complying with the identity verification processes outlined. The new regulations make the relationship between banks and exchanges more necessary exchanges will have to have customers have accounts at these banks, helping to add to verification.
Further Details on Bithumb
Bithumb has a large userbase and captures a significant portion of the crypto exchange market in South Korea. The business had to adjust its registrations because they were getting overloaded with requests to join their platform. Furthermore, they had to work feverishly to integrate a better infrastructure to keep up with the large demand that took place over the last quarter of the prior year. According to Quartz, the platform has at least 100,000 users trading at any given minute. It makes sense that the government imposed some regulations, as many crypto transactions are taking place with the won/cryptocurrency trading pairs.
One of the biggest problems that have troubled Bithumb and other crypto exchanges, besides the aspect of scaling, has been that of security. Bithumb was recently attacked by hackers that were linked to the authoritarian regime of North Korea. Bithumb experienced an attack in June of last year, where, a loss more than $70 million was suffered by the exchange.
Following the data leak and the hack, the firm did say that they would compensate those who were affected accordingly.
It seems that with this move of accepting new investors on to the exchange that the platform believes that it has the know-how and the wherewithal to scale further and withstand potential attacks. Growth is a great thing when it is sustainable. Without the ability or the infrastructure to sustain the same level of superior experience in all regards, growth may become detrimental in the long run.
It is clear that exchanges have to account for safety, scaling, and remuneration in the event of a loss.