Bithumb hits its traders with a huge shocker as it reportedly announced a reduction in its withdrawal limit last Monday. Before the announcement, the crypto exchange found some measures that it would use to scale down money laundering in all transactions. At the exchange, it was confirmed that buying and selling coins would be blocked in eleven international states, which encompass North Korea, Iraq, and Ethiopia, among many others. The operators of the company added that they had seen the need to reinforce account verification procedures for foreign traders.
Would Security Measures Be Taken on Existing Users?
Yes! No one is an exception. South Korea has established a preponderant order that all registered trading companies are supposed to follow in order to curb cybercrimes. The stated order includes a real-name system for cryptocurrency accounts, which is supposed to put a stop to anonymous crypto trading. Bithumb decided to respect the government’s security guidelines, and its first attempt at that is making gradual reductions to the withdrawal limit for customers with unverified accounts.
Updates from Bithumb showed that about 60% of customers have not switched to a real-name account and that the current exchange has a withdrawal limit of 300 million won monthly, and a daily limit of 50 million won. Further elaboration on the withdrawal limit revealed that if the account is not verified, the daily limit for withdrawals would be dropped to 45 million won starting next month.
Adopting the 5-5-7 Regulation
Besides lowering withdrawal limits for unregistered users, Bithumb is also taking in the government’s idea on how to go about finances and security. The platform, via its Twitter account, announced that it has built a first-class information security professional and budget system.
The proposed structure, 5-5-7 Regulation, suggests that 5% of a financial organization’s total human resources be IT specialists, 5% of which will be dedicated to information security, and 7% of the company’s overall budget be used for privacy. Bithumb pledged to change its budget form to suit the formerly mentioned regulation.