Bithumb, a leading crypto exchange based in South Korea, is implementing a new policy that would forbid its employees from buying and selling cryptocurrencies using its platform. The restriction complies with an upcoming law that seeks to regulate the crypto industry and protect customers.

Bithumb Bans Employees From Investing and Trading Crypto 

In an announcement made on Friday, Bithumb declared that starting this month its employees would no longer be allowed to trade and invest in cryptocurrencies on its platform. The regulation follows a series of restrictions imposed by the crypto exchange earlier which prohibited employees from trading during working hours and purchasing new tokens within 72 hours of their listing.

To implement this measure, Bithumb asked its employees to submit written statements that detailed their account withdrawals over the last month. In addition to this, the company stated that it will implement a continuous monitoring system with self-audits and an internal reporting system.

The decision comes amid South Korea’s toughening stance on the crypto market. Regulators in the country are extending their oversight to the country’s crypto exchanges in their efforts to safeguard investors while keeping market manipulation and money laundering at bay.

Other Crypto Exchanges to Follow Bithumb

With Bithumb moving towards regulatory compliance, other Korean exchanges like Upbit and Korbit are expected to follow suit. As per the new law, crypto exchanges are required to open bank accounts for customers and partner with local banks till September 24. According to some estimates, as many as 50 crypto exchanges could go out of business due to their failure to meet these requirements. 

South Korea has been stepping up its efforts to monitor the crypto sphere in the last 12 months with multiple new laws. The regulations aim to introduce many changes including a new taxation plan and a ban on privacy coins. 

Previously, the country’s Financial Services Commission(FSC) had amended its financial reporting rules in March, making it necessary for crypto custodians and exchanges to report their transactions to the Financial Intelligence Unit. Some exchanges like Binance Korea and OKEx shuttered their operations after the regulation went into effect.