The regulators operating in any of the countries mainly have two primary concerns regarding cryptocurrencies.
- Money laundering
Considering these issues, the four exchanges from South Korea joins the bandwagon early this week to combat such basic potential hurdles.
Amongst the countries, South Korea has been in the forefront talking about the leading countries in terms of crypto trading volume. You can say this country is the home for a few of the largest exchanges out there. Moreover, the Korean government is also seen taking part as a pro-active stance towards regulation, encouraging the industry.
The core issue, however, still is the threat of crypto usage with regards to launder money, which seems far easier where banks are using because of the anonymity of majority of blockchain operating currencies.
The previously mentioned four exchanges with partners are Bithumb, Korbit, Coinone, and Upbit. On Friday, the company reveals that they plan to create a new hotline for sharing details and information specifically on suspicious transactions.
Four Crypto Exchanges in South Korea
The primary motto is to recognize trading behavior relating phishing, pyramid schemes, predatory lending, and various illegal actions. This alliance will also focus on the operation to share the database of suspicious wallet addresses holding flags for spurious activity that might be seen relating scammers searching to use distinct for transferring huge amounts of cryptocurrency.
The press release mentions that AML initiative hopes to produce and show significant results. As these all four exchanges come together to employ effectual user security and fraud detection practices.
The news also adds about these exchanges to hold experience in operating bank virtual accounts authentication. Moreover, this might result in a boost with strong relationships between traditional financial institutions.
It mentions that this step follows the Korea Blockchain Association which decides to impose self-regulatory measures. However, this will oversee these core activities regarding its members. The destination will be a secure trading environment that will minimize criminal activity within the crypto industry.
Previous in June, the Korean authority bolsters Anti Money Laundering regulations. However, this needs domestic banks to strict their monitoring process on crypto bank accounts.
Recently, the Korea Internet Development Agency along with the Ministry of Science and Technology presents a survey regarding Korean crypto exchanges relating potential security illegal and vulnerabilities.
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