[Bithumb] Celebrating 11th Anniversary - Strengthening the Virtual Asset Investor Protection Program

Hello.

NO.1 Virtual Asset Platform, Bithumb.

First, extending free registration for transaction fees

Second, support for moving transaction offices

Third, commemorating Bitcoin's highest price! Offering up to 70,000 KRW worth of Bitcoin nationwide.

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

Fifth, strengthening the virtual asset investor protection program

In celebration of its 11th anniversary, Bithumb is moving forward with the preparation of the Virtual Asset User Protection Act.

Since 2023, through the investor protection program, we have been able to prevent customer damage by quickly accessing damage compensation and emergency incidents.

Bithumb will continue to take a step further in preparing the Virtual Asset User Protection Act.

Bithumb has been operating a 24-hour emergency incident response center to handle customer complaints promptly.

With the recent expansion of the virtual asset market's volatility and transaction volume, customer interest and demand are increasing.

To meet these customer demands, we are expanding our 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 established the 'Market Monitoring Room', a dedicated organization for preparing the Virtual Asset User Protection Act,

actively cooperating with the Financial Supervisory Service and financial institutions, and operating a high-level abnormal transaction monitoring system.

All transactions within Bithumb are analyzed through the abnormal transaction monitoring system, and any confirmed unfair transactions are immediately reported to the financial authorities.

Additionally, we have established an external whistleblower channel to strengthen the investor protection program.

We will provide rewards of up to 10 billion KRW for reporting activities related to market manipulation, virtual asset industry and domestic transaction office employees' misconduct, and unfair trading activities.

The Financial Services Commission, the Financial Supervisory Service, and the prosecution are actively cooperating to ensure user protection by monitoring unfair transactions.

※ Whistleblower Channel: whistle@bithumbcorp.com

Furthermore, the 'Market Monitoring Committee', composed of internal/external experts such as representatives, compliance officers, and external advisory members,

was established to preemptively prevent major abnormal transactions that repeatedly manipulate transaction volume and raise prices through transactions.

Bithumb plans to introduce the industry's highest level of 'self-regulatory prevention system' to prevent this in advance.

Bithumb does not operate customer deposits as its own funds.

1. The cash deposited by customers is safely managed and stored in a separate account at a cooperative bank.

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

To enhance the transparency of protection and management of customer deposits, we conduct regular audits through external audit firms and disclose periodic audit reports for all customers to verify.

(Audit Report)

Also, to protect customer assets and damage compensation, we separately accumulate approximately 100 billion KRW as a reserve fund, which is three times the legal requirement.

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

transaction offices must accumulate at least 5%% of the value of virtual assets not stored in cold wallets as insurance or reserve funds.

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

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

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

supports various AML operations such as customer verification (KYC), suspicious transaction reporting (STR), and more, with advanced capabilities beyond the limitations of existing external solutions.

Through this, we are thoroughly preparing legal regulations related to the reporting and use of specific financial transaction information and striving for the best in anti-money laundering prevention.

Moreover, through the AML system, we are preemptively preventing customer damage with an internal control process that is stronger than the financial authorities' standards, such as abnormal transaction monitoring and deposit blocking.

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

Thank you.

*This information is automatically generated.