The South Korean crypto trading platform Bithumb has been hit by disrupted transactions, with deposits and withdrawals requests encountering “errors” – with customers rushing to complete new know-your-customer (KYC) procedures.
Bithumb users reported disruptions as the number of users trying to verify their identity on the exchange appears to have swamped servers with traffic.
Bithumb responded by announcing that “due to a temporary surge in the number of users” on the platform “due to” KYC-related activity, “confirmations and logins” were “being delayed intermittently,” and that “urgent measures” were “being taken” to remedy the issue.
Following the news late last month that Bithumb had been handed an official operating permit by the financial regulator, the trading platform duly informed its customers of the need to complete KYC procedures under the terms of the Act on the Reporting and Use of Specific Financial Transaction Information.
Bithumb began conducting identity verification procedures for all customers from 4 am on December 2 – but it appears the rush to complete the process has taken its toll on the firm’s servers.
KBS reported that some 6.8m South Koreans have Bithumb accounts – which will be effectively frozen for customers who do not complete the relevant KYC protocols.
Bithumb explained that a number of system “errors” pertaining to deposits and withdrawals and “asset balance display” were resolved in the morning of December 2, but that “login problems” were “still being addressed” later the same day.
The platform added that it was “discussing compensation” for “customer damages related to disrupted service.”
Meanwhile, Kuki News reported that Toss Bank, a well-backed neobank that has been linked to possible future crypto-related activities, has denied that it was working on a deal to buy a “small or medium-sized” crypto exchange.
Media reports and internet chat forums had claimed Toss was attempting to recreate the success of its neobank rival, K-Bank, which has seen a huge boost in usership after it began offering fiat on/off ramps to Upbit customers. Upbit is South Korea’s market-leading crypto exchange.
Kuki News quoted a Toss spokesperson as calling the reports “groundless,” and adding:
“There have been no discussions here regarding cryptoasset-related transactions.”
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