South Korean cryptocurrency exchange Bithumb is tightening up its approach to Anti-Money Laundering enforcement with a series of new measures that include trading restrictions, stronger Know Your Customer checks, and specialized blockchain intelligence solutions. The South Korean crypto exchange has an estimated average of 1 million daily users and a daily transaction volume worth 5–7 billion ($4.4–6.2 million). Bithumb face a lot of troubles last year due to police investigations over allegations of fraud.  

Bithumb places restrictions on countries that are on the FATF’s increased monitoring list. 

Bithumb’s new, toughened Anti-Money Laundering regime includes placing restrictions on accounts registered in countries that are on the Financial Action Task Force’s “increased monitoring” list for failing to implement measures to combat financial crime, as well as those labeled “high-risk jurisdictions.” Countries on the former list include Myanmar, Barbados, Iceland, and 15 others, with the latter list limited to two: Iran and the Democratic People’s Republic of Korea. All existing accounts in these regions will be frozen and new accounts banned.

After several reports of crypto exchange’s acquisitions, major gaming conglomerate Nexon denied it was planning to acquire Bithumb earlier this year. Now, it is being rumored that JPMorgan and CME Group may now be considering a purchase of majority shares in the exchange.

Bithumb is partnering with Octa Solution to implement its AML measures.

Bithumb is partnering with Octa Solution to implement its Anti-Money Laundering tools for crypto-assets and using Chainalysis and Dow Jones Risk & Compliance solutions. As reported earlier, South Korea’s Ministry of Economy and Finance has recently announced its plans to implement a 20% tax on Bitcoin and cryptocurrency profits starting Jan. 1, 2022. As of March, an expected revision to the country’s Specific Financial Transactions Act will also see crypto exchanges fall under new regulatory obligations, including AML requirements.