Korean news outlet Yonhap reported on August 29 that South Korean crypto exchange Bithumb and Nonghyup plan to sign a contract renewal on August 30. The contract renewal would allow the exchange to assign new real-name virtual accounts to cryptocurrency traders.
Bithumb had previously suspended their new user registration service on July 31 of this year. Many reports suggested that the halt in the service was forced on Bithumb because Nonghyup insisted on changes after the exchange suffered a $31 million hack in June.
Banks in South Korea can provide banking services to crypto exchanges to deposit user assets on their behalf. Each virtual account dedicated to a specific user within the exchange’s deposit account, however, must be paired with a user’s verified identity. Doing this allows banks to monitor the flow of funds through the account for anti-money laundering purposes.
Current regulations in the country require that user accounts must be kept separate from company accounts that are used to hold the exchange’s operating funds.
Bithumb’s trading volume took a serious hit after the suspension, dropping by 40 percent in only three days from around $350 million on July 31 to $200 million by August 3.
Trading volumes declined further, dropping to $71.7 million by August 23rd, but the announcement has caused Bithumb’s trading volumes to recover, bouncing back to $361 million as of press time, as data from CoinMarketCap reveals.
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