South Korea’s largest cryptocurrency exchange Bithumb has announced that it will block trading in 11 countries as part of its revised internal regulations aimed to prevent money laundering using its system. Foreign users will also need to undergo a stricter verification process.
Bithumb — the world’s fifth largest cryptocurrency exchange by trading volume — is banning the use of its platform across 11 countries, the company announced on Sunday.
The 11 banned countries include Serbia,,Iran, Ethiopia, Iraq, Sri Lanka, Trinidad and Tobago, Tunisia, Vanuatu, Yemen, and Syria. All named countries are on the Non-Cooperative Countries or Territories (NCCT) list of Financial Action Task Force (FATF), an intergovernmental organization that combats money laundering. NCCT is a list of countries that — FATF believes— do not have sufficient laws to prevent money laundering globally.
This is a very important decision because during the last G-20 financial meeting, the participating countries decided to implement the Financial Action Task Force on Money Laundering standards. In a document released by the G-20 group they explain that they will be committed to implement these rules on virtual currencies.
The document said:
“We commit to implement the FATF standards as they apply to crypto-assets, look forward to the FATF review of those standards, and call on the FATF to advance global implementation. We call on international standard-setting bodies (SSBs) to continue their monitoring of crypto-assets and their risks, according to the mandates, and assess multilateral responses as needed.”
The world is moving towards the implementation of these standards, which will allow the cryptocurrency market to gain legitimacy and receive more investors. The FATF will be reporting to the G-20 on how countries are moving into this direction. Additionally, what Bithumb is doing, is part of these efforts to be internationally compliant.
“We ask the FSB, in consultation with other SSBs including CPMI and IOSCO, and FATF to report in July 2018 on their work on crypto-assets,” reads the document released by the G-20 members.
“The Bithumb team will voluntarily impose strict policies and cooperate closely with local financial authorities to increase the transparency in the cryptocurrency market and protect investors,” a Bithumb spokesperson said. “With progressive voluntary policies, Bithumb will improve the global standard of cryptocurrency exchanges.”
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