Bithumb, one of South Korea’s largest cryptocurrency exchanges, has announced that it will gradually lower the withdrawal limit for any accounts that have not been converted to real-name ones, citing risks of financial crimes.
Starting on June 4, customer accounts that have not yet converted to real-name confirmation accounts,” will be having limited withdrawal. This announcement closely follows the exchange confirming that it will block trading in 11 countries including North Korea, Iran, and Iraq, as well as strengthening the account verification process for foreign users.
This new policy of real-name accounts was among the crypto regulations adopted by the South Korean government in early January of this year. The South Korean regulators adopted this policy in order to end the anonymous trading of cryptocurrencies. But despite this regulation, the conversion rate has been low. In early May, only about 30% had switched to real-name accounts. Today it is still possible to transact cryptocurrencies in Korea using unregistered accounts.
However, “According to Bithumb, about 60% of customers do not switch to a real-name verification accounts,” the news outlet detailed, adding that the exchange currently has a daily withdrawal limit of 50 million won (~US$46,465) and a monthly limit of 300 million won (~$278,753).
But that is soon to end as a Bithumb official was quoted saying:
“We have decided to gradually reduce the withdrawal amounts in the Korean won because it is raising concerns that bank accounts for unconverted withdrawals may become a target of various financial crimes.”
Although the exchange has not revealed how low the withdrawal limit will eventually be.