The South Korean crypto trading platform Bithumb has been hit by disrupted transactions, with deposit and withdrawal requests encountering “errors” – customers rushing to complete new Know Your Customer (KYC) procedures.

Bithumb users have reported disruption as the number of users trying to verify their identity on the exchange appears to have overwhelmed servers with traffic.

Bithumb responded by announcing that “due to a temporary increase in the number of users” on the platform “due to” KYC-related activity, “confirmations and connections” were “intermittently delayed. “and that” urgent measures “were” being taken “to remedy the problem.

Following the announcement late last month that Bithumb had received an official operating license from the financial regulator, the trading platform duly informed its clients of the need to perform the KYC procedures under the law on the declaration and use of specific information on financial transactions. .

Bithumb began conducting identity verification procedures for all customers from 4 a.m. on December 2 – but it appears the rush to complete the process has taken its toll on the company’s servers.

KBS reported that some 6.8 million South Koreans have Bithumb accounts – which will effectively be frozen for customers who do not meet relevant KYC protocols.

Bithumb explained that a number of system “errors” regarding deposits and withdrawals and “displaying asset balances” were resolved on the morning of December 2, but the “connection issues” were “still being resolved” later that day.

The platform added that it was “discussing compensation” for “damage to customers due to service disruption.”

Meanwhile, Kuki News reported this Start the bank, a well-backed neobank that has been linked to possible future crypto-related activities, has denied that it is working on a deal to buy a “small to medium-sized” crypto exchange.

The media and internet discussion forums had claimed that Toss was trying to recreate the success of his neobank rival, K-Bank, which saw a huge increase in user numbers after it started offering ramps Upbit clients. Upbit is the leading crypto exchange in South Korea’s market.

Kuki News quoted a spokesperson for Toss who called the reports “baseless” and added:

“There has been no discussion here regarding transactions related to cryptoassets.”

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Learn more:

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