South Korea’s second largest cryptocurrency exchange platform, Bithumb, is set to restart user registrations again after its suspension was reversed.
According to a recent report from South Korean news agency Yonhap, NH bank will sign a new contract on 30th August with the exchange platform, thereby enabling the company to resume registration for new crypto investors on its platform.
It can be recalled that before any cryptocurrency exchange platform can operate in South Korea, the exchange must get the backing of any bank within the country that will vouch for its credibility.
Under new Know Your Customer (KYC) mandated rules in the country, cryptocurrency trading is only allowed for investors when the name they intend using on any crypto exchange platform corresponds with their account name at their bank.
After Bithumb was hacked to a tune of USD 40 million cryptocurrencies in late June, the firm stopped the registration of new accounts on its platform for a whole month. Also, deposit and withdrawal service was suspended, thereby causing trading to decline by 40 percent.
The exchange at the time failed to give any reason while it stopped the registration of new members. However, sources disclosed that the reason for the suspension was due to its banking partner, NH bank’s refusal to renew Bithumb’s contract following the hack.
“We have decided not to renew the contract because Bithumb still has problems in protecting consumers and information and preventing money laundering,” an official from Nonghyup Bank told Business Korea.
The reason why NH bank decided to back Bithumb again is the latest approval by the South Korean government. The government listed Bithumb, Upbit, and a few cryptocurrency exchanges as being credible for having uptight security systems.
How The Resumption Will Affect the Korean Crypto Space
Investors confidence in the crypto industry in the country is expected to grow in the coming days. First, the Upbit exchange received a proof of legitimacy after they were accused of inflating their balance sheet. Now Bithumb has hit the ground up and running again with a resumption of registration.
After a relatively quiet market period, a massive influx of capital into Bithumb is expected from South Korea. Additionally, new investors that have previously been unable to register on the platform due to the suspension will now have access to Bithumb, and its liquidity.
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