The exchange has reportedly asked all likely affected users to withdraw their funds
South Korea’s leading cryptocurrency exchange Bithumb has informed its non-Korean users that they may be denied access to the platform unless they complete a mobile identity verification process.
According to local news outlet Pulse News, Bithumb is implementing this step to comply with the country’s new, stricter anti–money laundering (AML) regulations.
The announcement, framed as a “Know Your Customer (KYC)” notice, targets all foreign users registered on Bithumb who reside in Korea.
Pulse reports that the new KYC requirement is expected to come into force during the year, although the exchange has not provided a specific date for when enforcement will begin.
Bithumb’s stringent action follows recent moves by Korean regulators to tighten AML controls. The exchange has also previously stated that it will not allow registrations from foreigners who cannot provide the required documentation.
The Korea Herald has reported that Bithumb recently restricted accounts originating from IP addresses in so-called “high-risk jurisdictions.” The outlet said the measures target accounts created in countries that the Financial Action Task Force (FATF) identifies as particularly risky.
For users affected by the new KYC measures who are unable to complete verification, Bithumb has urged them to withdraw their holdings. The exchange said affected users are free to move their digital assets at any time before the mandatory national requirements take effect later this year.
In addition, Bithumb recently partnered with two other major Korean exchanges, Coinone and Korbit, to launch a project aimed at implementing the FATF’s “travel rule.” The initiative, announced on August 31, envisions both individual and joint steps by the three exchanges to meet AML obligations.