Bithumb, one of the largest cryptocurrency exchanges in South Korea, is renewing its contract with Nonghyup Bank and will reinstate new account registrations. Korean news agency Yonhap reported on Wednesday that Bithumb and Nonghyup plan to sign a contract on August 30 that will allow the exchange to register virtual accounts for cryptocurrency traders.
As previously reported by CoinDesk, the Bithumb exchange suspended registration on July 31 due to a “service improvement process.” Some news sources reported that the action was forced because the bank insisted on updating following the hack, which caused $31 million in damages.
Banks in South Korea can currently provide account services to cryptocurrency exchanges to hold user funds on their behalf. However, each virtual account assigned to a specific user on the exchange must be accompanied by the provision of user identification data so that the bank can monitor the flow of funds for anti-money laundering purposes.
In accordance with country regulations, user accounts must also be separated from the exchange accounts that hold the working capital of the exchange itself.
After the announcement of the suspension of registration, 24-hour trading volume on Bithumb fell by 40% in just three days, from $350 million to $200 million. Daily trading volume also dropped to approximately US$71.7 million, but had recovered to US$344 million at the time of writing, according to CoinMarketCap.
According to coindesk.com
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