Major South Korean criptobolsas will act together against money laundering.

The four major cryptocurrency exchange houses in South Korea announced a joint program to combat the use of cryptoactives in money laundering. The information was released by the South Korean news agency Yonhap on Monday, January 28.

Bithumb, Coinone, Korbit and Upbit are the crypto bags that participate in this joint program. According to the agency, the companies created a direct line that will allow reporting suspicious transactions. The goal is to recognize unusual transactions and payments, with possible links to phishing, pyramid schemes, predatory lending and other illegal activities. The information will be shared by the four exchange platforms in real time.

An official of one of these operators, whose name was not disclosed, said the joint system will allow instant verification of suspicious transactions made on the other platforms. In this way they will be able to “take the necessary measures, such as blocking their own related accounts,” the spokesperson explained.

On the other hand, exchange bureaus will build a shared database, which includes addresses of suspicious cryptocurrency purses, another source said. This way, they could identify scammers who try to use several exchange houses to move large quantities of crypto agents to the same purse.

“It is expected that the cooperative step against money laundering through cryptocurrencies will increase the strength of the industry and better protect consumers”, the source said. In addition, it was reported that startups will encourage other cryptocurrency exchange houses to join the initiative.

The cryptocurrency exchange platforms in South Korea are obliged to comply with the identification standards of their clients, known as KYC (Know Your Costumer). This is because, since the beginning of 2018, the authorities prohibited the anonymity in the commercialization of cryptoactives in that country.

Over the past year, South Korea has relaxed its position on cryptocurrencies and Initial Currency Offers (ICO). In August, the South Korean parliament discussed a legislative agenda to develop a legal framework for the sector. The debates included, in addition to the regulations for the use of the cryptoactive, possible regulations that allow the ICO, banned since 2017 in that country.

In addition, proposals came from the authorities of Jeju Island, the largest island in the Asian country, to turn the province into a special center for the development of blockchain projects. The project would aim to attract investment and stimulate the creation of new jobs.

Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.

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