South Korea’s largest cryptocurrency exchange, Bithumb, has announced it will take another step towards global expansion. To do that, it aims to strengthen integration with its international arm.

On Feb 26, Bithumb launched a new digital asset transfer service between the South Korean exchange and Bithumb Global, a new international digital asset exchange released by Bithumb in October 2019.

Meanwhile, South Korean authorities are considering imposing a 20% tax on income from cryptocurrency, evidently pushing the biggest local exchanges to reinforce their foreign operations.

KYC Tier-2 Verification is required to use the new service

In order to use the new asset transfer service, Bithumb clients are required to complete the second tier of Know Your Customer (KYC) on both platforms. According to a public announcement released by the firm. As such, Bithumb users of KYC level2 can move their assets to Bithumb Global but can’t move them back if their Bithumb Global accounts didn’t comply with KYC level2 verification.

Additionally, the maximum amount for the transfer between the platforms is capped at two Bitcoin (BTC) – or about $18,000 at press time, according to data from Coin360. As the service launches, users can only be able to move Bitcoin and Ether, the firm said, emphasizing that Korean won transfers aren’t yet supported.

Bithumb Global is also widely used in China and Japan

A spokesperson at Bithumb’s international business development outlined that the new transfer service would ultimately increase liquidity by reducing barriers between the two platforms. According to the representative, Bithumb Global is mostly used in South Korea so far, with at least 40% of Korean clients also subscribed to the platform. Users from China take the second with around 25%.

The crypto exchange’s latest actions towards expanding global operations come amid the increasing concerns associated with crypto taxation in South Korea.

As reported earlier in January 2020, South Korea’s Ministry of Economy and Finance was considering imposing a 20% tax on income from cryptocurrency transactions. On Feb 21, South Korean tax experts reportedly advised the local government to apply a low-level trading tax on crypto profits before subjecting citizens to a transfer income tax.

Last week, major South Korean cryptocurrency exchange Upbit reported on withdrawal restrictions in some foreign countries amid uncertainty over taxes and KYC procedures.