Overview
South Korea's leading cryptocurrency exchange, Bithumb, has announced phased reductions in withdrawal limits for non-verified accounts to mitigate financial crime risks. The new policy takes effect on June 4, aligning with stricter anti-money laundering (AML) measures.
Key Changes:
- Non-verified accounts: Daily withdrawal limit drops from ₩50 million (~$46,465)** to **₩45 million (~$41,795).
- Monthly cap: Reduced from ₩300 million (~$278,753) for unverified users.
- Geographic restrictions: Blocks users from 11 high-risk jurisdictions including North Korea, Iran, and Iraq.
Regulatory Context
South Korea's Push for Account Verification
Despite January 2024 mandates requiring real-name cryptocurrency accounts:
- Only 30% of traders adopted verified accounts by May 2024
- 60% of Bithumb's clients remain unverified as of June 2024
👉 Why crypto exchanges enforce KYC policies
Bithumb's Security Enhancements
Compliance with Electronic Banking Rules (5-5-7 Framework)
| Requirement | Bithumb's Implementation (2018 Data) |
|---|---|
| IT Staff | 21% of total employees |
| Security Personnel | 5% of workforce |
| Privacy Budget | 8% of annual expenses |
The exchange claims to be the first fully compliant platform with this financial security standard.
Industry Implications
Phased Reduction Strategy
While final limits remain undisclosed, a Bithumb executive stated:
"Gradual reductions address public concerns about becoming financial crime targets while allowing adjustment periods for users."
FAQ Section
Q: How does this affect foreign Bithumb users?
A: Enhanced verification procedures now apply, with full restrictions for 11 prohibited countries.
Q: Can I still trade without verification?
A: Yes, but with progressively stricter withdrawal limits to encourage compliance.
Q: What makes the 5-5-7 rule significant?
A: This banking standard ensures adequate resources for cybersecurity and data protection.
Q: When will the next limit reduction occur?
A: Bithumb hasn't announced specific timelines but indicates changes will be incremental.
Conclusion
As regulators worldwide tighten cryptocurrency oversight, Bithumb's measures reflect growing industry emphasis on:
- AML compliance
- User verification
- Proactive risk management