Korean Banks to Limit the Service of Unverified Traders

In January, Korean authorities tightened the rules for crypto trading on local exchanges, requiring platform users to identify their ID with a bank account
12 September 2018   1494

South Korean banks will limit the service for users of crypto exchanges that have not identified their identity at the request of financial regulators of the country. This is reported by Bitcoin.com with reference to local media.

In January, South Korean authorities tightened the rules for trading cryptocurrencies on local exchanges, requiring platform users to identify their identity with a bank account.

To do this, a trader must open an account with a bank that cooperates with the exchange within the framework of the so-called real-name system. If the requirement is not met, traders can only withdraw funds from their accounts and lose the opportunity to deposit Korean won on their accounts.

However, after more than seven months, only four major cryptoexchangee platforms of the country - Upbit, Bithumb, Coinone and Korbit - offered their clients services for converting accounts into verified accounts.

At the moment about 40-50% of users of these exchanges fulfilled the January demand of the authorities. In addition, most traders continue to conduct operations with crypto-currencies at the expense of funds deposited on exchanges before tightening the rules of trade.

In turn, some exchanges have taken a number of measures to encourage the transition of traders to verified accounts. In particular, Bithumb cut its daily withdrawal limit by 10% for users with unconfirmed accounts, and Upbit distributed about 100 million Korean won ($ 88,000) to traders who fulfilled the requirements in August.

So far, banks cooperate only with four exchanges of the country. For example, Bithumb has an agreement with Nonghyup Bank. Recently, financial institutions have promised to strengthen measures to combat unverified users of exchanges. There's no info whether this decision will affect mining farms of South Korea.

As local publications write, banks plan to limit service and impose restrictions on the entry and withdrawal of funds in Korean won, unless traders create new verified accounts by a certain date.

Bithumb to Launch Blockchain For Users' DeFi Apps

A new blockchain is currently under development but the testnet is scheduled to be launched by the end of the year and mainnet in next quarter
07 November 2019   121

The South Korean trading platform Bithumb will launch on its own blockchain platform operating on the principle of “exchange as a service,” CoinDesk reports.

The Bithumb Chain blockchain will allow users and developers to create open source decentralized financial applications (DeFi), which developers hope will form the basis of the new financial ecosystem.

A new blockchain is currently under development. The launch of the testnet is expected before the end of the year, and the main network in the next quarter.

Javier Sim, co-founder and managing director of Bithumb Global, noted that the new blockchain will be based on the OBFT hybrid “revolutionary consensus model”. He did not specify the details of the new mechanism, but it is known that the company intends to patent it, and that it uses a “provably random function”. Thus, OBFT is similar to the technology of the Algorand project, which uses its approach to the Byzantine consensus (Byzantine Fault Tolerant, BFT).

Earlier, the head of the American company Coinbase Brian Armstrong said that the growth of decentralized finance is becoming exponential.