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Photo: Bithumb |
[Alpha Biz= Paul Lee] Bithumb announced on December 1 that it has established a new system to proactively block cryptocurrency transactions made under the names of deceased individuals, in response to the growing number of remote financial crimes.
The company explained that this measure aims to prevent illegal activity involving identity theft of the deceased—an issue that has emerged in non-face-to-face financial services, where authentication tools such as ID cards and mobile phones may continue to be used by family members or acquaintances, enabling unintended or illicit transactions.
Under the new system, Bithumb works with a credit rating agency to detect death notifications. Once confirmed, the corresponding account is immediately blocked from login. The exchange then conducts a detailed review of recent transactions and transfers to determine whether any suspicious activity occurred. When necessary, the system is linked to the Financial Intelligence Unit (FIU) for filing Suspicious Transaction Reports (STRs).
A Bithumb representative stated, “We continue to strengthen our internal controls to minimize blind spots in non-face-to-face transactions. We will further enhance our user-protection–focused management framework going forward.”
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
