Hassan Maishera
Bithumb stops employees from trading cryptos on its exchange
South Korean-based cryptocurrency exchange Bithumb has banned its employees from trading Bitcoin and other cryptocurrencies on its platform. This is the latest staff-related trading restriction the company has introduced.
Employees can’t trade on the Bithumb exchange
Bithumb, one of the leading crypto trading platforms in South Korea, announced earlier today that its employees had been banned from trading cryptocurrencies on the exchange. The ban will come into effect next month, with the employees now banned from using a Bithumb account to access the crypto market.
According to the crypto exchange, the restriction is designed to strengthen internal regulations and improve transaction transparency on the platform. Furthermore, Bithumb said it would put in place a permanent monitoring system such as self-audits and an internal reporting system.
Some staff members have begun sending written statements regarding account withdrawals since last month. The latest ban comes after the cryptocurrency exchange implemented a series of restrictions earlier this year. Bithumb previously banned its employees from trading cryptocurrencies during working hours.
The measures implemented by the crypto exchange go beyond its employee-trading activities. It also added a few staff-related measures to fend off data leaks, unjust trade practices and market manipulation activities.
This latest development comes as South Korea continues to strengthen its regulation of the crypto market. The FSC, South Korea’s financial regulator, amended its financial reporting rules earlier this year. According to the new regulation, crypto exchanges have to register their businesses with the regulator, and they have until September 2021 to do so. Furthermore, the exchanges have to submit regular transactions reports with the Financial Intelligence Unit. They are also required to set up real-name accounts at Korean banks.
The regulation didn’t go down well with some of the exchanges. Some of the smaller crypto exchanges in South Korea are reportedly planning to sue the government for excessive regulation of the cryptocurrency market.
