Bithumb to Register New Accounts after Agreement with Partner Bank

South Korean Cryptocurrency Exchange Bithumb

Bithumb cryptocurrency exchange will resume registration of new accounts after it reached an agreement to renew ties with its partner bank, according to reports from Korean News outlet, Yonhap News.

Suspension on New Account Registrations on Bithumb

Bithumb, one of the biggest crypto exchanges stopped onboarding new members in at the end of July after it failed to renew its partnership with its banking partner Nonghyup Bank as required by South Korean regulations.

The bank had expressed concerns that Bithumb had problems protected in protecting consumers and information and preventing money laundering, citing these as reasons to reject a renewal with Bithumb. However, the crypto exchange was adamant that it will reach an agreement with the bank.

Korea Times had reported that the bank’s initial decision was influenced by the major hack on Bithumb the previous month. The hack, in which the Bithumb lost $30 million worth of cryptocurrency, caused it to suspend deposits and withdrawals. Soon the exchange lost its top spot in transactions volumes.

Agreement to Renew License with Nonghyup Bank

A spokesperson from Nonghyup Bank has reportedly confirmed that the bank has reached an agreement to renew its partnership with Bithumb. “We decided to keep the investor assets separate, and we will not accept interest or deposits,” the spokesperson was quoted as saying.

For its part, Bithumb will meet specific requirements of the South Korean law. The law, established in January, requires exchanges to maintain a partnership with a South Korean bank which should be renewed after every six months. The law also stipulates that new accounts created would be linked to the bank account bearing the real name of the holder.

The renewal, which was expected to take effect from August 30, will present Bithumb an opportunity to reach peak performance. Trade volumes on the platform shot up immediately rumors of the agreement went out. According to CoinMarketCap, its adjusted trade volume for the past 24 hours is currently $337 million placing it 5th on the chart. It has the 4th highest trade volume for BTC pairs.

Solomon Sunny is the market reporter for Smartereum, one of the global leaders in Ethereum, blockchain and currency news. He produces technical price updates on digital currencies and writes recent developments about blockchain.


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