Bithumb, a South Korean cryptocurrency exchange, has barred its employees from trading on the platform. The move is in compliance with regulations recently set by the country’s regulatory body. The regulations mandate local exchanges operating in the country to bar their employees from trading internally through their platforms.
The law which is set to be effective from 25th September this year, set the regulation as a means to increase transparency in crypto transactions and help curb illegal activities and losses. The Korean Financial Services Commission has stated that failure to comply could see the employees pay hefty fines to the tune of $88,000.
Bithumb is one of the largest exchanges in the country and it is expected that other players in the country like Upbit and Korbit will follow suit. The exchange has seen massive growth and in January alone this year recorded approximately 700 percent new registrations on its platform.
It generated over $17.7 million in profit last year and is projected to rise to over $2 billion. Its success has seen it garner the interest of major institutions such as Naver, JPMorgan and Morgan Stanley, Visa and Deutsche Bank.
Aside from the internal trading restrictions, the company has also placed its employees under other policies which regulate the hours within which they are allowed to trade and from buying crypto that has been recently listed on the platform until after 72 hours have elapsed.