The second largest South Korean cryptocurrency exchange, Bithumb, will reopen account registrations after a month of closure.
The reason is down to the exchange regaining its partnership with Nonghyup (NH) Bank.
Bithumb will Reopen Account Registrations
In South Korea, crypto exchanges must provide virtual bank accounts so users can withdraw and deposit Korean won without having to go through their banks. This is for efficiency and security.
And on August 30th, NH Bank, one of South Korea’s largest financial institutions, will sign an agreement with Bithumb to provide these virtual bank accounts to Bithumb users.
In return for regaining banking support, Bithumb will follow specific requirements as dictated by South Korean law such as a ban on foreign citizens from using the exchange, along with measures like making sure traders link their exchange accounts to their actual banking account.
These new measures were introduced by the Government back in January.
It is with thanks to the new details of this agreement that NH Bank has renewed its partnership with the exchange, allowing new users to sign up and trade on the platform as early as this week.
The two establishments had been affiliated before; however, NH Bank had suspended its services for Bithumb back in July due to a hack the exchange experienced in June. Bithumb lost between $14 – $17 million in the heist.
The market is already reacting to the news. Trade volumes on Bithumb have increased steeply in the last 24 hours and all the leader coins are currently in the green, seeing gains. At the time of writing, the exchange has experienced $362.4 million in trades since the announcement of the news.
Bithumb trade volumes had dropped due to its banking issues. Now, the world’s fifth largest exchange looks set to skyrocket.
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