Civicex, a cryptocurrency exchange, denied North Korean users trading on their platform

Civicex, a cryptocurrency exchange, denied North Korean users trading on their platform


Bittrex, the US cryptocurrency exchange, said in a tweet on April 22 that the statement about North Korean users trading on its platform was wrong.

Bittrex said in this post that it checked two accounts that allegedly belonged to North Korean users and pointed out that the same account was investigated as early as October 2017. The exchange claimed that South Korean residents mistakenly chose North Korea's drop-down menu.

Bittrex said it uses country identification, physical address and IP address to determine where the user is coming from, and concludes that "no users from North Korea trade on our platform."

Earlier this April, Bittrex was accused by the New York Financial Services Authority (NYDFS) of poor policy and control over anti-money laundering (AML), understanding of your customers (KYC) and foreign asset control (OFAC) standards. NYDFS therefore rejected Bittrex's BitLicense application.

According to NYDFS, the company has issued multiple compliance letters to Bittrex "to address ongoing deficiencies and to assist Bittrex in developing appropriate control and compliance programs that are appropriate to the nature of the industry."

After the Financial Times reported on the matter, Bittrex responded to the regulator's decision, expressing disappointment and arguing that the regulation “damaged rather than protects New York customers”. The exchange also explained its disagreements with the Financial Times about its “anti-money laundering” and compliance practices.

As of the publication of this article, the exchange ranked 58th on CoinMarketCap's list of digital currency exchanges, based on adjusted trading volume. At the time of writing, Bittrex's 24-hour trading volume was approximately $47.8 million, up nearly 8% in the past 24 hours.