Bithumb halts New Virtual Accounts Registration

South Korea based crypto exchange giant, Bithumb has temporarily stopped accepting news clients starting from August 1. However, the move comes after the exchange failed to renew its partnership contract with NH Nonghyup Bank in an scheduled time period.

According to the news outlet;

“Bithumb will stop issuing new virtual accounts from August. As it has failed to renew a contract with NH Nonghyup Bank”.

However, the Korean regulations states that crypto exchanges must partnership with banks and also virtual accounts can use for trading. However, only if it is backed by a KYC-attested back account.

The released statement reads that, Bithumb seems to be in trouble as new customers are not allowed to create new accounts. Since the platform doesn’t have any partnerships to proceed with the exchange. The news noted that, the existing customer who already holds virtual accounts can use for deposit or withdrawal services.

At initial, Bithumb had a teamed up with Shinhan Bank, soon after the end of contract the exchange moved to NH Nonghyup Bank. But the bank declined to renews its partnership due to the recent hack that result in loss of $16.88 million assets.

Further, Bithumb has notified regarding the hack that took place on June 19. It is now guiding with the entire process about its present situation and upcoming plans.

Bank’s representative said that;

“We have decided not to renew the contract because Bithumb still has problems. Thus, in protecting consumers and information and preventing money laundering”.

In the month of January, South Korean regulators had entitled real-name system for crypto accounts. Meanwhile, the conversion rate has been low and around only 30 percent of accounts had converted into real-name accounts. Currently, the unregister accounts are still not in use for crypto transaction in South Korea.

Although, the first renewal was the end of July in which Upbit, Coinone and Korbit were able to renews their contracts. Further, official noted besides it would resume while the both the parties decides a consensus on safety of users’ data.

“We have a consensus with Nonghyup Bank on renewal of the contract. We are planning to iron out our different views on some legal expressions and start issuing virtual accounts soon”.

Remarkably, Bithumb is the only operator now left amoung Korea’s ‘big four’ exchange that excludes partnerships of banking for virtual accounts.

Let get connected on Twitter for more crypto exchange updates.

Image Source: Bithumb