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Bithumb lowers withdrawal limit for cryptocurrency traders not using real-name system

Bithumb said on Monday that it has «decided to gradually reduce the withdrawal limit for customer accounts that have not converted to real-name confirmation accounts», starting on June 4. This announcement closely follows the exchange confirming that it will block trading in 11 countries, as well as strengthening the account verification process for foreign users.

The regulators of South Korea established the real-name system for cryptocurrency accounts at the end of January in order to stop the anonymous crypto trading. However, the conversion rate has been low. In early May, only about 30% had switched to real-name accounts. Today it is still possible to transact cryptocurrencies in Korea using unregistered accounts.

Bithumb said that about 60% of customers do not switch to a real-name verification accounts. Currently the exchange has a daily withdrawal limit of 50 million won (about $46,465) and a monthly limit of 300 million won ( about $278,753).

If the account is not confirmed by real-name, the daily withdrawal limit will be reduced to 45 million won (about $41,795) from next month. While Bithumb has not revealed how low the withdrawal limit will eventually be.

«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», – said the exchange.