Korea’s Bithumb Crypto Exchange Month Long Freeze Ends as New User Registration Opens
Korean Crypto Exchange Bithumb To Open User Registrations After A Month Long Freeze
South Korea’s second-biggest crypto exchange, Bithumb will officially reopen registrations for new investors as early as this week. They are reportedly restoring its contract with the country's Nonghyup Bank – a move that will allow the firm to once more take new account registrations.
The reports come from Korean news outlet Yonhap. The news firm says that Bithumb and Nonghyup are preparing to sign the contract on Aug. 30 in order to allow the exchange to allow new so-called real-name virtual accounts to cryptocurrency traders.
According to a spokesperson from banking partner Nonghyup Bank, Bithumb will fit specific requirements as directed by South Korean law in return for reacquiring banking support. Distinctly, Nonghyup had previously refused its services for Bithumb at the end of July, reports at the time suggesting the decision had come after the exchange lost $17 million in its most recent hack a month previously.
All South Korean platforms have had to comply with the laws, which also included bans on non-Korean residents using them and necessary linking of exchange accounts to bank accounts and a user’s real identity.
This month, the government of South Korea approved UPbit, Bithumb, Korbit, and a few other cryptocurrency exchanges for having adequate security systems, which may have contributed to the decision of NH Bank to restore its relationship with the exchange.
Following the suspension in July, 24-hour trading volume on Bithumb took a hit and dropped by 40 percent within just three days, from around $350 million on July 31 to $200 million on Aug 3rd. However in the past day following the recent news, BTC/KRW trade volumes on Bithumb have shot up 70%.
With the resumption of registrations by Bithumb, local investors have become more optimistic in the short-term trend of the market, considering that it has successfully recovered from the largest digital asset exchange hack in the country’s history.