Bithumb Will Block Withdrawals to Unverified Wallets

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South Korean crypto exchange Bithumb will prohibit users from withdrawing crypto assets to unverified third-party wallets. The innovation comes into force on January 27, 2022, the company has reported via its blog.

To register their addresses, users will have to go through additional verification. The restrictions do not affect withdrawals to local or foreign centralized exchanges with strict KYC procedures in force.

Bithumb has faced pressure from its partner bank Nonghyup Bank. The bank has allegedly demanded changes to the exchange’s policy to comply with the FATF “road rule.”

The publication claims the bank called on Bithumb to “block all wallets that do not have their own KYC system.” In particular, we are talking about MetaMask and MyEtherWallet.

In March 2020, the Korean Parliament adopted some legislative amendments requiring crypto exchanges to comply with financial reporting requirements, KYC rules and information security regulations.