Bithumb, a major South Korean cryptocurrency exchange, is imposing trading restrictions on its employees by prohibiting employees from trading on their platform.

Bithumb bans bitcoin traders

Bithumb, South Korea’s largest cryptocurrency exchange, has announced that it has banned its employees from using their internal accounts to trade cryptocurrencies. According to the company, the measure aims to prevent insider trading, a financial crime in the country.

With the announcement made, the crypto company ordered all of its employees, including executives, to withdraw their money from their accounts by the end of June: “From this month we will closely monitor whether the employees are complying with the regulations – audit and internal system operations, ”the statement reads, adding that no one in the company should hold funds on Bithumb as of July.

The company said the restriction is intended to strengthen internal regulations and improve the transparency of trading on the Bithumb exchange. As part of the measure, employees filed a written report of account withdrawals last month. In addition, the exchange will implement a permanent monitoring system with self-assessment and internal reporting, announcement notices.

The latest initiative follows a number of related employee restrictions for Bithumb, including a ban on trading during business hours and other regulations. Bithumb notes that the company also took several employee-related measures many years ago to prevent data leaks, unfair trading practices, and market manipulation.

Bithumb Bans Bitcoin Traders As South Korea Strengthens The Scope Of Crypto Surveillance

The news comes as South Korea continues to tighten its stance on regulating local crypto companies and expanding the scope of oversight of the country’s cryptocurrency exchange market.

The Korean government has set a deadline for crypto exchanges to register with local financial authorities by September 2021. In March, the FSC revised its accounting rules, according to which crypto exchanges submit regular transaction reports to the Financial Intelligence Unit and real name accounts with South Korean banks.

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