South Korean crypto exchange Bithumb will ban its users from withdrawing crypto assets to unverified third-party wallets. The ban will go into effect next January 27, according to the platform's blog.
To register their addresses, customers must complete additional verification. The ban does not apply to withdrawals to local or foreign centralized exchanges that implement strict KYC procedures.
According to local media reports, Bithumb has faced pressure from its partner bank Nonghyup Bank. According to sources, Nonghyup Bank has allegedly demanded changes to the exchange's policy to comply with the Financial Action Task Force's (FATF) "travel rule."
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The publication claims the bank has asked Bithumb to "block all wallets that do not have their own KYC system." In particular, we are talking about MetaMask and MyEtherWallet.
Bithumb announced last fall it intended to block access to foreigners who do not verify their identity using a cell phone.
The crypto exchange previously restricted access to users from "high-risk" jurisdictions to combat money laundering.