Bithumb has suspended issuing new virtual accounts to crypto traders starting on August 1 after failing to renew the contract with its bank. These accounts are part of the real-name system enforced by the Korean government earlier this year. Only three exchanges in the country are now reportedly able to open new virtual accounts for their customers.
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Bithumb Halts Issuing New Virtual Accounts
Crypto exchange Bithumb has announced the suspension of new virtual account issuance starting on August 1. With a 24-hour trading volume of $245,786,110 at the time of this writing, Bithumb currently ranks as South Korea’s largest cryptocurrency exchange by trading volume, according to Coinmarketcap.
Business Korea elaborated:
Bithumb, one of South Korea’s four biggest cryptocurrency exchanges, will stop issuing new virtual accounts from August as it has failed to renew a contract with NH Nonghyup Bank.
However, the news outlet noted that “customers who already have virtual accounts can use them for deposit and withdrawal services.” For Bithumb customers, virtual accounts are needed to deposit or withdraw Korean won.
According to Etoday, the bank has given Bithumb a one-month grace period. During this time, it will continue to provide deposit and withdrawal services for existing accounts. However, the publication noted that “it will become difficult to use existing virtual accounts if the contract renewal is finally terminated.”
Using the Real-Name System
Real-name virtual accounts are part of the system aimed at preventing money laundering and increasing transparency, implemented by the Korean government at the end of January. The regulators want all crypto trading accounts to be real-name ones but are met with a number of challenges.
The biggest problem is that banks only
