Four leading crypto-exchanges in South Korea including , Corbit, Upbit and Coinone have joined forces to fight against cryptocurrency-powered money laundering activities, reported The Korea Herald on January 28, 2019.
Solidarity in Unity
In a bid to curb the activities of criminals who use bitcoin BTCUSD and other distributed ledger technology () based digital assets to aid their money laundering (AML) operations, top cryptocurrency trading platforms in South Korea have reportedly formed an alliance.
According to , UPbit, the 31st largest cryptoassets exchange in the world as well as Bithumb, Corbit and Coinone have put in place a ‘hotline’ that allows the four crypto exchanges to share information regarding suspicious transactions or unusual trading activities as well other criminal acts such as voice phishing, schemes and more.
The new initiative is expected to make it easier for exchanges to take proactive actions against the activities of fraudsters in the local cryptospace.
Commenting on the matter, a spokesperson for one of the exchanges reportedly told news sources:
“South Korean crypto exchanges can now check suspicious transactions made at other trading venues and take necessary actions, such as blocking related accounts,”
The official also hinted that the initiative is an innovative move towards eliminating crypto-powered money laundering operations and it would significantly strengthen the exchanges while also fostering consumer protection.
He concluded,
“The Cooperative step against money laundering through virtual currencies is expected to boost the soundness of the industry and to protect consumers better,”
Unlike its neighbours, South Korea has maintained a liberal stance towards cryptocurrencies in recent times though initial coin offerings () remain illegal in the state.
Regulators Determined to Eliminate Bad Eggs
It’s worth noting that South Korean regulators have been hard at work trying to sanitise their cryptoassets industry even though they are to succeed in entirely weeding out bad actors in the space.
As by BTCManager in January 2018, South Korean legislators introduced a bill aimed at making it compulsory for lawmakers who hold bitcoin BTCUSD and altcoins to declare their digital currency investments.
Earlier in July 2018, BTCManager informed that South Korean Financial Services Commission () had implemented new guidelines to govern cryptocurrency exchanges in the region. The regulator also mandated the Korean Financial Intelligence Unit (KFIU) to increase the surveillance of crypto transactions as well as traders’ activities.
Published at Tue, 29 Jan 2019 09:00:20 +0000
