Bithumb, a leading Korean crypto exchange, shuts down new account openings due to loss of banking

in #cryptocurrency3 years ago


In South Korea, crypto exchanges need to sign new deals with banks every six months. After suffering a hack in June, Bithumb is now having trouble renewing its banking. Nonghyup Bank, its current banker, has decided to end the partnership.

Bithumb just recently re-opened deposits and withdrawals of cryptocurrency after these were frozen in June, following the exchange's loss of $17M in a hacking incident.

But now Bithumb is seeing new trouble, with banks showing little interest in supporting the exchange. One Korean bank - Shinhan bank, previously terminated its agreement with Bithumb, and now another - Noghyup Bank - has also stopped working with Bithumb, noting Bithumb's failure to protect customers and prevent money laundering.

Following the news of the new account freeze, trading on Bithumb went down 40%. The three other large Korean crypto exchanges - Coinone, Korbit, and Upbit - still enjoy fiat banking.

“We are planning to iron out our different views on some legal expressions and start issuing virtual accounts soon,” a Bithumb official insisted, stressing the exchange had reached a “consensus” to renew the contract with Nonghyup Bank" as reported by CNN.