The new regulations that were recently introduced in South Korea, have contributed to the emergence of a large number of problems for crypto companies.

After several major steps taken by Bithumb to comply with regulatory requirements, South Korea’s largest cryptocurrency exchange has decided to cut ties with offshore exchanges.

According For an official announcementBithumb has decided to terminate the trademark licensing agreement with Bithumb International and Bithumb Singapore.

These platforms will no longer be allowed to use the name “Bithumb” after their contracts expire on July 30th.

This was reportedly done to avoid any connection to future money laundering investigations.

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Earlier this March, South Korean financial regulators required foreign exchanges to register with the country’s Anti-Money Laundering (AML) body if they were using the Korean won.

The amended law, which includes a six-month notice period, required banks to issue accounts in the real names of traders so that human use of these accounts could be verified.

This has made banks responsible for analyzing the risks associated with cryptocurrency exchange.

This also resulted in its banking partners losing out on smaller trading platforms, and entities that are now suspended from withdrawing funds for trading if they do not follow the revised guidelines.

Then the country’s cryptocurrency exchanges, including Bithumb and Upbit, along with other smaller exchanges, decided to cancel many cryptocurrencies that no longer exist or that have a small trading volume with the placement of many coins. Others are on the watch list.

This was a controversial decision, especially since South Koreans are better known for trading altcoins than bitcoin, with bitcoin making up only 7% of transactions in May, according to CoinMarketCap.

It is worth noting that Bithumb announced the date of August 13, when it will stop accepting registration requests from foreign users.

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Bithumb will also deny access to its services to traders residing in four other countries that have been added to the money laundering watch list.

Around the same time, Bithumb also announced that it would ban its employees from making deals on the platform.

This was reportedly done to “ensure a transparent process” by preventing employees from taking advantage of the platform and engaging in unfair business practices.

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