Exchanges in South Korea announce AML initiative

Monday 28 January 2019 10:19 CET | News

Four crypto exchanges in South Korea have announced a joint AML initiative, meant to prevent hackers from trading or swapping cryptos for fiat.

The exchanges that teamed up are: Bithumb, Coinone, Korbit, and Upbit, and their partnership was based on the idea of cleaning up the image of crypto trading, and protecting users according to government standards. The plan behind the initiative is to build a common infrastructure that allows not only a constant communication between exchanges, but a shared database to detect and track illegal operations as well.

As part of the plan, a hotline dedicated to AML issues will be established amongst the four exchanges. Moreover, through this hotline wallet information, such as trades with suspected connections to voice phishing, predatory lending, pyramid schemes, and other illegal activities, will be shared in real time.

The South Korean government held an audit of 21 exchanges in order to verify whether they complied with legal operating requirements, and whether they provided their customers with optimal security. Except for seven exchanges, the rest were concluded to have security weaknesses. The four exchanges that announced the joint AML policy are among the seven that passed the government’s test.

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Keywords: South Korea, exchange, AML, cryptocurrency, wallet, phishing, lending, illegal activities, fraud, security, government, Fiat
Countries: World

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