Crypto Exchange Bithumb to Ban Crypto Withdrawals to Unverified Wallets

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Bithumb, a South Korea-based cryptocurrency exchange, has just announced on its blog that it plans to block crypto assets withdrawals to unverified third-party wallets. According to the platform, the measure will come into effect on January 27.

Users who wish to register their addresses must complete an additional verification. It is worth mentioning that the restrictions do not apply to withdrawals to local or foreign centralized exchanges with strict KYC procedures.

The crypto exchange has reportedly faced pressure from its partner bank Nonghyup Bank, which has demanded changes to the company’s policy in order to comply with the FATF “road rule.”

Local sources say the bank called on Bithumb to “block all wallets that do not have their own KYC system.” In this sense, the affected wallets are MetaMask and MyEtherWallet.

The Korean Parliament adopted in March 2020 legislative amendments which required crypto exchanges to comply with financial reporting requirements, KYC rules and information security regulations.

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