Bithumb to Block Cryptocurrency Trading in 11 Countries

Bithumb to Block Cryptocurrency Trading in 11 Countries

June 7, 2018 Off By Steven Anderson

An increased regulatory oversight on cryptocurrency trading drives exchanges to take careful or extensive measures. After Poloniex and Bitfinex, Bithumb takes additional measures to guarantee anti-money laundering compliance with the laws in the country.

Known as the fifth largest cryptocurrency exchange in terms of trading volume in the world, Bithumb bans the utilization of its platform around 11 countries; the company said last week.

The 11 banned countries encompass Serbia, Syria, Sri Lanka, Yemen, Iran, Iraq, Vanuatu, Tobago, Trinidad, and Tunisia. All of these belong to the Non-Cooperative Countries or Territories list of Financial Action Task Force. It is considered an intergovernmental organization that fights against money laundering. It is a list of different countries that do not have enough laws to avoid money laundering around the world.

The South Korean exchange is eager to guarantee compliance with the laws of the country. Some local enforcement bodies recently raided cryptocurrency exchange’s office with a charge of tax evasion. But, there are no convictions followed yet. Based on the reports, the authorities were only investigating the exchange as well as checking into their AML records.

Upbit, popular for being the largest cryptocurrency exchange during that time, was likewise investigated by some South Korean authorities this month with a charge of fraud. Nevertheless, there were no formal charges pressed against it.

Four executives from the two cryptocurrency exchanges like Coinnest, fifth largest cryptocurrency in South Korea were arrested for charges of fraud and embezzlement in April.

Many regulatory bodies in other parts of the world tighten the strings on trading cryptocurrency. They are now more careful because the digital currency has become the place for scams and other dangers than before.

The US Department of Justice (DOJ) investigates the market manipulation in the industry of cryptocurrency according to recent reports. On the other hand, many Indian authorities have plans to levy an 18% commodity tax on trading of a range of virtual currencies.

From the outright ban on digital currency to taxing and regulation, there has been a shift in focus. This can be considered good news to all cryptocurrency enthusiasts around the globe. Unethical practices, scams, fraud, and other potential issues are rampant in the industry these days. And only rightful and strict regulations can curb the prevalent and never-ending menace. Everyone hopes that the prevalence of such issues can be effectively and successfully addressed in no time.

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