The South Korean crypto-Exchange Bithumb has set the trade of crypto-Assets in different countries, and banned. Among these “high risk countries” are Iran and South Korea’s neighbor, North Korea. The decision is politically motivated, and the pressure of the government.
The crypto-Exchange Bithumb, South Korea’s largest trading platform for crypto currencies, has banned the Trading of crypto Assets in different countries. These include countries such as North Korea, Iran, Iraq, Sri Lanka, and seven more. Is this on the basis that these countries are “high risk countries”. Bithumb refers to the classification of Non-Cooperative Countries and Territories (NCCT) Initiative. On Monday, the 28. In may, they should enter into force.
The NCCT turns out countries that have been included by the Financial Action Task Force on Money Laundering (FATF), the so-called Black list. The legislation of the said countries to combat money laundering and the financing of terrorism does not correspond to the Standards set. With the list of gentle pressure should be exerted on those that do business in these countries operate.
Bithumb has dropped this Policy now. To prevent the use of their platform for money laundering or the financing of terrorism is abused, the Exchange of all transactions in the on the list of countries listed. Thus, it is not users from these countries will be possible to use the platform to Trade crypto-Assets. In addition, additional authentication mechanisms should be introduced for foreign users, to prevent fraud.
Pressure from the government
This step is very radical. Reason for this could be that you want to avoid in any case of a conflict with domestic tax authorities or other regulators. This could put excuses such as shops in these States, to impose tough regulatory measures against the Exchange. Specifically, South Korea is noticed, in the past, by a regulation, for example, by the ICO to ban or re-Considerations, sought to ban crypto-currencies.
“The Bithumb Team will voluntarily put in place strict guidelines and work closely with the local financial authorities to work together to increase the transparency on the crypto market and to protect investors. With the progressive voluntary policy will improve Bithumb the global Standard of the crypto-exchange“,
a spokesman of Bithumb.
Even without bans, and a clear regulatory intervention, the policy may control the behavior on the crypto market.