Korean exchanges cryptocurrency exchanges will fight money laundering and fraud
- The Korean cryptocurrency operators will work on improved security of the industry.
- Customers are invited to report on suspicious transactions.
Four largest cryptocurrency exchanges in South Korea - Bithumb, Upbit, Korbit и Coinone - join forces to fight money-laundering via digital assets. The group of trading platforms launched a hotline where their customers can leave a message and share information about suspicious transactions with cryptocurrencies.
Dubious operations are often used in Ponzi schemes or so-called financial pyramids that target inexperienced and unsophisticated traders. Once a user reports suspicious activity to the management of the exchange, the platform initiates verification and may freeze if any malpractices are revealed.
At the beginning of January, the financial regulator of South Korea inspected 21 cryptocurrency exchanges to make sure that they comply with the security requirements. The overwhelming majority failed the tests. Only Bithumb, Korbit and Coinone successfully passed the inspection and obtained the permission from the regulator.
It is worth noting that South Korea is one of the most active cryptocurrency markets. According to CryptoCompare statistics, the trading platforms of this country surpassed their Maltese rivals by trading volumes.
Meanwhile, the European authorities are also preoccupied with money laundering issues when it comes to digital assets. Thus, recently ESMA submitted a report to the Commission of the European Banking Authority with the call to develop pan-European regulation for the industry to ensure customer protection and avoid money laundering.
Author
Tanya Abrosimova
Independent Analyst
