Bithumb to Lower Withdrawal Limit for Unverified Traders

Despite the exchange's attempts to verify its clients, as of the beginning of May, only 30% of accounts were verified
29 May 2018   681

South Korean cryptocurrency exchange Bithumb "decided to gradually reduce the withdrawal limit for customer accounts that have not converted to real-name confirmation accounts." This is reported by Bitcoin.com.

South Korean regulators have set up a new system for verification of accounts on the exchange at the end of January to prevent anonymous trading of digital assets, but many traders continue to use unconfirmed accounts. As of the beginning of May, only 30% of accounts were verified.

According to Bithumb, about 60% of customers didn't switch to a real-name verification accounts. Exchange currently has a daily withdrawal limit of 50 million won (~US$46,465) and a monthly limit of 300 million won (~$278,753).

We have decided to gradually reduce the withdrawal amounts in the Korean won because it is raising concerns that bank accounts for unconverted withdrawals may become a target of various financial crimes.
 

Bithumb

Earlier it became known about Bithumb's refusal to serve users from 11 "non-cooperating countries and territories".

Bithumb to Win Court Case of User’s $355K Hack

The court also noted that cryptocurrencies are "mainly used as speculative means, so it cannot be regarded as an electronic means of payment."
27 December 2018   299

The South Korean court ruled in favor of the Bithumb exchange in a case of theft of a cryptocurrency worth $ 355,000 from its client. The court concluded that the platform has taken all necessary precautions, reports CoinDesk.

In November, an exchange customer placed 478 million Korean won on his account. After that, the hacker allegedly gained access to his account and exchanged fiat currency for Ethereum. Bithumb processed these transactions and as a result, the client’s account left 11 cents in cryptocurrency and one dollar in Fiat.

The affected client of the exchange suggested that the consequences of a hacker attack on the platform in 2017 could result in loss of fund.

Considering that Bithumb offers similar services to the financial sector, it requires a high degree of security measures required by financial institutions.
 

User's Lawsuit

Representatives of the exchange, in turn, said that Bithumb is not a financial institution and is not obliged to compensate for the damage.

According to the Electronic Financial Transactions Act, Bithumb is not responsible for compensation because it is not a financial company, an electronic financier, or an electronic financial assistant. … Since we have strengthened our security policy since the leak of personal information, we have fulfilled our obligation to be a diligent manager.
 

Bithumb's Reply

The decision of the court says that Bithumb sent 10 SMS-notifications about the withdrawal of funds from client's account, thereby warning about the danger. The judge ruled out the connection of last year’s Bithumb hacking with the leakage of client data, adding that the victim himself could transfer personal information to the attackers.

The court also noted that cryptocurrencies are "mainly used as speculative means, so it cannot be regarded as an electronic means of payment."

In December, Bithumb commented on new allegations of overstated trading volumes.