South Korean cryptocurrency exchange Bithumb failed to renew its contract with the bank to service customers' accounts. Under current legislation, the exchange no longer has the right to open new accounts.

Starting from 1 August, Bithumb, one of the largest South Korean cryptocurrency exchanges, suspends new virtual accounts registration, local media reports. This will not affect those customers of the exchange, who already have virtual accounts for funds deposits and withdrawals through linked bank accounts.

To open a virtual account on the South Korean exchange, one needs to link a bank account to it, and the name of both accounts must match.

The previous contract with Shinhan Bank expired, and Bithumb tried to extend the contract with the bank Nonghyup, one of the largest in South Korea, but received refusal. The bank was concerned with fears caused by cybersecurity problems on Bithumb, which in June became a victim of a hacker attack and lost about $30 million in cryptocurrencies.

“We have decided not to renew the contract because Bithumb still has problems in protecting consumers and information and preventing money laundering,” said a spokesman for Nonghyup.

South Korean authorities banned anonymous trade through unidentified virtual bank accounts. After the ban came in force in January, six South Korean banks began opening trading accounts for transactions with cryptocurrencies in accordance with new rules, that is, after verification and identification of a customer and taking into account all the requirements of KYC / AML.

Bithumb is the only one of the largest South Korean cryptocurrency exchanges, that lost banking support. The same bank Nonghyup renewed its contract with Coinone, Upbit and Korbit cooperate with Industrial Bank of Korea and Shinhan, respectively.