Bithumb exchange is now closer to blocking all third-party & private wallets-based crypto withdrawal services.
Bithumb is one of the four crypto exchanges in South Korea, which is fully licensed and eligible to provide crypto-fiat services for its users. Few weeks ago, Bithumb exchange decided to take a new decision to fight against illicit fund transactions or anonymous funds transactions. For this, Bithumb announced that all the users needed to verify their account with the Bithumb exchange account, to get whitelisted to facilitate transactions in their wallet easily.
The last date to verify the person’s wallets with the Bithumb crypto exchange is 27 January 2022. So after two days, no one user will be able to transfer his crypto assets outside the exchange to the third party/personal/anonymous/non-custodial unverified wallets.
As per available details on 24 January, Bithumb is going to be the second exchange to restrict the withdrawal to unverified/unknown crypto wallets. Before this Coinone exchange decided to follow the same policy to ensure that exchange is out of any type of illegal way of funds transaction-based activities.
On the other side, Korbit and Upbit are still lagging to follow this decision to adopt this policy for its users. But reportedly, these two exchanges are also working to bring the same approach to make the exchange out of any kind of illegal fund transactions.
Under this policy, exchange users needed to give details of their third-party wallets/exchanges details along with the KYC verification process.
Bithumb is giving full freedom to transfer funds from the exchange to domestic and non-domestic crypto exchanges with KYC processes such as Kraken, Bitstamp, Blockchain.com, By bit, and Binance.US.
Such increasing efforts by these exchanges are showing that strict restrictions-based policies on the crypto exchanges are enough to allow the citizens to use crypto trading and related services. Here the South Korean government is doing best with such an approach to fight against the illegal use of crypto assets, instead to follow the approach like China and Russia.