After nearly one month of disabling new user registration on its platform due to its failure to renew its banking contract, the world’s fifth largest cryptocurrency exchange by 24-hour volume is set to resume opening new accounts for interested clients, according to a Yonhap report on August 29, 2018.
Bithumb Meet Banking Terms & Conditions
In a bid to curb fraudulent operations like money laundering and other unlawful acts by bad actors, earlier in the year, South Korean authorities put in place some regulations that all cryptocurrency exchanges must adhere to, including banning anonymous trading.
The regulatory watchdogs made it clear that cryptocurrency exchanges will not be able to register new users without having a valid contract with a banking partner which must be renewed every six months.
Bithumb could not meet up with its contract renewal with NH Nonghyup bank by the end of July and on August 1, 2018, the cryptocurrency exchange platform temporarily suspended issuing new real-name crypto accounts for users.
“We have a consensus with Nonghyup Bank on renewal of the contract. We are planning to iron out our different views on some legal expressions and start issuing virtual accounts soon,” Bithumb stated at the time.
The news came as a blow to the exchange, crashing its trading volume by 40 percent.
According to sources close to the matter, Bithumb and its new banking partners will finalize their agreement on the 30th of this month, and the exchange will be able to to resume its full business operations.
It’s worth noting that Shinhan bank used to be the banking partner of Bithumb but denied renewing the contract after the exchange became the victim of a $30 million hack back in June.
Bithumb also approached Nonghyup Bank for a deal at the time, but the financial institution denied its request.
Interestingly, by the end of June, Bithumb announced it had recovered a considerable chunk of the stolen funds by collaborating with other cryptocurrency exchanges across the globe and moving all its funds to cold storage.
The proactive efforts of the firm paid off to some extent, as it was able to reduce its loss from the reported $30 million to roughly $17 million.
Bithumb Remains Profitable Despite Challenges
In spite of the hard times Bithumb has passed through in recent times, the highly reputed platform remains rock solid.
As previously reported by Blockchainreporter on August 24, 2018, Bithumb reported a massive half-year profit of $35 million and with the renewal of its banking contract, nothing stops Bithumb from mooning again this year like it did in 2017.