[Bithumb] 11th Anniversary - Strengthening Investor Protection Program

Hello.

NO.1 Virtual Asset Platform, Bithumb.

First, free extension of transaction fee registration

Second, support for transaction office relocation

Third, Bitcoin highest price celebration! Nationwide maximum 70,000 KRW worth of Bitcoin drop.

Fourth, Bithumb gives all members a total of 30 billion KRW worth of gifts.

Fifth, strengthening the investor protection program

In celebration of the 11th anniversary, Bithumb will take a step further in preparing the Virtual Asset User Protection Act.

Since 2023, with the investor protection program in operation, we have been able to prevent customer damage through rapid damage compensation and emergency accident response.

Furthermore, Bithumb aims to take a step further in preparing the Virtual Asset User Protection Act.

Until now, Bithumb has operated an emergency accident response center 24 hours a day to handle customers' urgent civil complaints.

Recently, with the expansion of the virtual asset market's volatility and increase in transaction volume, customers' interest and demand are growing.

To meet these customer demands, we are expanding the general consultation to the only 24-hour customer center in the country.

• Start date: November 11, 2024 (Monday)

• Consultation channel: Customer Center (KakaoTalk and 1661-5566)

Bithumb has installed the 'Market Monitoring Room' to strengthen virtual asset user protection and

is operating a highly advanced abnormal transaction monitoring system with the support of professional personnel from the Financial Supervisory Service and financial institutions,

Analyzing all transactions within Bithumb through the abnormal transaction monitoring system, and immediately reporting to the financial authorities if unfair transactions are confirmed.

Also, to strengthen the investor protection program, we have installed an external whistleblower channel.

We will provide a reward of up to 10 billion KRW for reporting activities such as market manipulation, unfair trading activities, and insider trading by executives and employees in the virtual asset industry and domestic exchanges.

The Financial Services Commission, Financial Supervisory Service, and the prosecution will actively cooperate to do our best in monitoring unfair transactions for user protection.

※ Whistleblower channel: whistle@bithumbcorp.com

Furthermore, we have launched the 'Market Monitoring Committee' composed of internal/external experts such as representatives, compliance officers, and external advisors,

If a large number of exchanges repeatedly manipulate transaction volume and raise prices through intentional transactions,

Bithumb plans to introduce the industry's highest level of 'self-regulation prevention system' to preemptively prevent this.

Bithumb does not operate customers' deposits as its own funds.

1. The cash deposited by customers is managed safely and can be withdrawn in full from the contracted bank.

2. The virtual assets deposited by customers are safely stored in cold wallets at a rate of over 90%%, higher than the 80%% required by the Virtual Asset User Protection Act.

To strengthen the transparency of asset protection and management, we conduct regular audits through external audit firms and disclose quarterly audit reports for all customers to verify.

(Quarterly Audit Report)

Also, to protect customer assets and compensate for damages, we separately accumulate approximately 100 billion KRW as a reserve fund, which is three times the standard required by law.

※ According to Article 8 of the Virtual Asset User Protection Act and Article 10, Paragraph 2 of the Supervisory Regulations,

Exchanges must separately accumulate insurance or reserve funds equivalent to at least 5%% of the value of virtual assets stored in cold wallets.

Bithumb completed the construction of the second-generation Anti-Money Laundering (AML) system in July 2024,

Starting full-scale operations to provide safer services by preventing illegal activities such as money laundering.

The second-generation AML system is a system developed by Bithumb itself,

Supporting various AML operations such as customer verification (KYC), suspicious transaction reporting (STR), etc., with highly advanced capabilities beyond the limitations of existing external solution systems.

Through this, we aim to thoroughly comply with laws related to the reporting and use of specific financial transaction information and do our best to prevent money laundering.

Furthermore, through the AML system, we are preemptively preventing customer damage with a more strengthened internal control process than the standard of financial authorities, such as abnormal transaction monitoring and deposit suspension.

Going forward, Bithumb will continue to develop and reinforce investor protection and user protection systems to prevent damage.

Thank you.

*This information is generated automatically.