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Home News Crypto

Bithumb Halts New User Registrations Due to Banking Issues

JP Buntinx by JP Buntinx
August 3, 2018
in Crypto, News
0
Bithumb Halts New User Registrations Due to Banking Issues
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New Bluetooth Security Flaw Can Affect Mobile Crypto Users

How Bitmain Helps Develop an ARM Chip Rival

Bithumb, one of the biggest companies currently active within today’s cryptocurrency space, has announced that it will no longer offer virtual accounts to clients.

A Roadblock for Bithumb

Cryptocurrency exchanges can only thrive and grow while they attract new clients. This is usually an ongoing process, although there is a lot more to this process than meets the eye. Bithumb in South Korea will no longer be able to onboard new clients due to an expired contract with NG Nonghyup Bank.

According to Business Korea, Bithumb will stop issuing new real-name virtual accounts. This decision has gone into effect as of August 1st, and will remain in place indefinitely. Customers who have an active Bithumb account can continue to use the exchange’s services without any issues, as they are not affected by these developments. Both deposits and withdrawals remain accessible, as nothing will change in this regard.

What’s Behind All of This?

Failure to renew their contract with Shinhan Bank was already a sign on the wall. Now that the company has not renewed its contract with NH Nonghyup Bank, they can no longer accept new user registrations. The request was turned down by the bank and was not an oversight by Bithumb.

However, in the midst of all this, a company spokesperson stated that Bithumb will try to “iron out different views on legal expressions” so as to resume regular business once again. How they plan to do exactly that and whether or not it is even possible to do so, is a different matter altogether. It is more likely Nonghyup Bank will block deposits and withdrawals associated with Bithumb, which can cause big problems for its clients.

Final Thoughts

This latest development doesn’t bode well for the future of Bithumb as an exchange. The company was hacked earlier this year and $31m was stolen from the exchange– which is also the reason why most regulators and banks are concerned with this platform.

Disclaimer

Please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. CryptoMode is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

Tags: BankBithumbExchange

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