South Korean crypto exchange Bithumb has said it will deny access to foreigners unable to verify their identity through their cellphones. The move comes as the trading platform complies with the country’s updated regulations that go into effect later this month.

Korean Bithumb Exchange Prepares To List Under New Rules

Foreign nationals who do not pass their cell phone identity verification will not be able to use the services provided by Bithumb, one of South Korea’s four largest cryptocurrency exchanges. The platform made the announcement this week as it prepares to follow new, stricter rules for the Korean crypto industry by September 24.

The country’s revised special funds law came into effect on March 25 and will be implemented after a six-month grace period. It requires domestic crypto exchanges to register with the Financial Intelligence Unit (FIU) of the Financial Services Commission (FSC). They must also cooperate with local banks for the implementation of the real name accounting system.

Although Bithumb is September 1 opinion addressed to “foreigners living abroad”, it also specifies that foreign nationals “living in Korea” who cannot verify their identity via cell phones cannot use the platform. According to the Korea Herald’s report In this regard, traders should perform the procedure via “Korean mobile phones” and “regardless of where they live”. The publication also notes that Bithumb has already stopped shipping foreigners without a foreigner’s registration card.

The exchange further warned affected users that they must withdraw their assets, without specifying a date. According to the notice, the services will be terminated “by 2021 (when customer confirmation becomes mandatory)”. The trading platform promised to notify users again “when client verification is required and policy changes are made.”

The English-language Korean daily quoted a Bithumb official as saying the company was taking the final steps before applying to register with the Financial Intelligence Unit, South Korea’s leading anti-money laundering body. In July, Bithumb ended its brand agreements with two parts trading platforms operating abroad under its brand.

On Friday, the country’s largest digital asset exchange, Upbit, became the first platform to register with the FIU. Bithumb, Coinone and Korbit are working to come up with a “travel rule” solution to meet another of the new regulatory requirements, the newspaper added.

Do you expect other Korean crypto exchanges to introduce similar restrictions for foreigners? Tell us in the comments section below.

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