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Korean Exchange Records 40% in Three Days

Bithumb has suffered a 40 percent drop in trading volumes within three days. Under this period, the South Korea based platform had temporarily halted setting up of new customer accounts.


 

In an online post at the end of July, Bithumb announced that opening of new accounts will be stopped effective from August 1st. The exchange said that the decision was arrived at in order to provide space for improving services. The latest drop comes after the firm lost $31 million back in June when its system was hacked. Bithumb has not provided more information about the suspension.

However, sources indicate that the June hack might be the reason behind the suspension. Local media reports that Bithumb banking associate NH Nonghyup Bank has not renewed its contract over concerns regarding the hack.

Early this week, CoinMarket data indicated that Bithumb trading capacity stood at $350 million approximately. By Friday, it had dropped to $200 million. The drop represented 40%. The exchange has remained mum over the drop and the license matter.

Unconfirmed reports indicate that Bithumb said it has an agreement with the banking partner regarding getting a new contract. The firm said there are plans to iron out divergent opinions on legal matters before opening accounts again. According to a report in the Business Korea, in case the license is not renewed, Bithumb will be able to handle customer withdrawals and deposits through hive accounts that might inconvenience clients.

On a positive side, Bithumb announced that from Saturday ten cryptos will resume normal operations. In a Thursday report, the exchange said that the resumption comes after complete checks were successfully done to safeguard systems from a possible breach.

On the Bithumb platform, there has been a disparity of 10 percent on prices of coins compared to other exchanges. To counter the difference, it was announced that no crypto will be added until there is stability.

Early this year, regulators had raised concerns over a possibility of money laundering through anonymous accounts. With the hacks, authorities are set to regulate trading exchanges as soon as possible. Lawmakers are currently working on a draft to regulate exchanges.

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