In an official Announcement, Bithumb said they will ban users from eleven countries beginning May 28, as part of new anti-money laundering (AML) practices.
In their press release dated May 27th, Bithumb confirmed that citizens that come from states that are part of the Non-Cooperative Countries and Territories (NCCT) initiative will no longer be able to use the firm’s services.
New account applications from users from the blacklist will be refused from Monday while existing accounts will be removed by June 21st.
Explaining its decision, Bithumb said that it was acting as part of “global anti-money laundering efforts.”
The press release continues with:
“NCCT users will be prevented from using the exchange so that cryptocurrency is not used to fund international terrorism.”
The NCCT is essentially a blacklist comprised of countries that do not comply with AML standards set up by the Financial Action Task Force on Money Laundering (FATF).
Some of the countries that will be affected are Iran, Ethiopia, Iraq, Serbia, Sri Lanka and Tunisia.
A Bithumb spokesman said that
“We will strictly enforce our own rules and protect our investors, and we will actively cooperate with the authorities.”
Exchanges in South Korea have faced regulatory compliance demands since late 2017. These demands range from taxation to identity verification as regulators attempt to standardize and secure the cryptocurrency market.