Bithumb can only accept new users in South Korea after meeting a layered set of legal, banking, and technical requirements. These include registering as a virtual asset service provider (VASP), maintaining a verified “real-name” bank account program, complying with the FATF Travel Rule, and meeting strict user-asset protection rules that took effect in 2024. For end users, onboarding hinges on Korean mobile-phone identity checks, government-ID verification, and linking a same-name bank account at Bithumb’s partner bank.
Regulatory foundations Bithumb must satisfy before onboarding
1) VASP registration with KoFIU under AML law
Bithumb—and any exchange operating in Korea—must register with the Korea Financial Intelligence Unit (KoFIU) under the Act on Reporting and Using Specified Financial Transaction Information. Registration hinges on obtaining ISMS (information-security) certification and securing a real-name bank account program with a domestic bank.
2) Real-name bank account program with a domestic bank
To enable KRW deposits/withdrawals, exchanges must operate verified “real-name” checking accounts issued via a partner bank, with banks documenting their AML risk-assessment procedures. In January 2025, Bithumb switched its issuing partner from NH NongHyup to KB Kookmin Bank.
3) Travel Rule compliance (information sharing on transfers)
Korea enforces the FATF Travel Rule for VASP-to-VASP transfers at or above KRW 1,000,000. Bithumb participates in the domestic “CODE” Travel Rule protocol (built by Bithumb, Coinone, and Korbit), which governs what counterparties it can send to/receive from. Practically, users may see transfers blocked if the receiving venue isn’t compatible.
4) User-asset protections under the Virtual Asset User Protection Act (VAUPA)
Since July 2024, exchanges must segregate customer funds, keep at least 80% of customer crypto in cold wallets, and carry insurance or reserves against incidents like hacking. These requirements are actively supervised by the FSC.
What a new Korean user must do to pass Bithumb onboarding
Step 1: Mobile-phone identity check and account creation
Bithumb supports “Quick” vs. “Regular” membership. Both start with Korean mobile-phone identity verification; Quick uses SMS login without a separate password. A government ID (resident card/driver’s license/residence card) is then collected.
Step 2: Age requirement
Korean rules bar minors; exchanges restrict service to users 19+. Bithumb and its bank partner will refuse real-name crypto accounts for minors.
Step 3: Link a same-name real-name bank account at the partner bank
To use KRW markets, a user must link an account at Bithumb’s partner bank (currently KB Kookmin). The name on the bank account must match the exchange account exactly. New KB accounts may be subject to initial transfer-limit periods set by the bank’s risk policy.
Step 4: Set up security & Travel Rule-ready withdrawals
Enable 2FA and register external withdrawal addresses. For transfers ≥ KRW 1,000,000 to other exchanges, ensure the counterparty is compatible and that KYC is completed on both ends—otherwise the transfer can be refused under the Travel Rule.
Important limitations for foreigners
Korean policy does not allow foreigners to open new bank accounts that are linked to crypto-exchange KRW trading. Separately, Bithumb requires mobile-phone identity verification; foreigners who cannot complete Korean mobile KYC cannot use the service. In practice, these rules prevent most foreigners from trading on Bithumb’s KRW market.
Behind the scenes: what Bithumb must keep running
- Ongoing AML program: Customer due diligence, monitoring, and suspicious-transaction reporting under Korea’s AML framework.
- Security certifications: Maintain ISMS and related controls, routinely audited and renewed.
- Cold-storage threshold and insurance/reserves: Maintain ≥80% cold storage and minimum insurance/reserve levels as set by VAUPA rules.
Recent changes and what’s next
- Banking partner change (2025): Bithumb moved real-name account issuance from NH NongHyup to KB Kookmin in January 2025; users onboarding to KRW trading now do so through KB.
- Cross-border controls (2025 H2 planned): Korea plans to regulate cross-border virtual-asset transactions starting in the second half of 2025, introducing registration/reporting for firms handling such flows—developments that could influence withdrawals and deposits involving overseas venues.
Quick FAQ
Do I need to be a Korean national to open a Bithumb account?
Nationality isn’t the key factor; the blockers are Korean mobile-phone identity verification and the real-name bank link. Policy currently prevents foreigners from opening bank accounts linked to crypto exchanges, which effectively blocks KRW trading.
Why are some withdrawals to other exchanges rejected?
For transfers ≥ KRW 1,000,000, Korea’s Travel Rule requires information sharing and counterparty compatibility. If the receiving platform isn’t compatible or KYC doesn’t match, the transfer can be blocked.
What documents does Bithumb actually collect?
A Korean mobile number for identity verification plus government ID (resident registration card, driver’s license, or residence card), and other account-matching details.
