Four major cryptocurrency exchanges in South Korea are collaborating on an initiative to combat potential money laundering, as well as schemes that could harm users.
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Bithumb, Coinone, Korbit and Upbit jointly announced on Friday that they will create a hotline to share real-time wallet information and suspicious transactions. The exchange said:
The Association aims to identify transactions with suspicious links to phishing, credit fraud, pyramid schemes and other illegal activities, as well as the exchange of relevant information on the hotline.
Exchanges will also manage a common database of suspicious wallet addresses, which, for example, can help them identify and stop scammers who want to use different exchanges to move large amounts of cryptocurrency into the same wallet.
The leaders of the Korean trading market plan to encourage other crypto-exchanges to join this initiative.
Steps towards the law
This news came a month after CoinDesk Korea organized a forum with the country's legislators on customer identity verification (KYC) and anti-money laundering (AML) initiatives. Seven crypto-exchanges at that time signed an agreement to ensure the protection of users.
Back in November, the Korean bar Association, a body that includes all South Korea's accredited lawyers, called on the government to speed up the introduction of rules to regulate blockchain and "prevent cryptocurrency-related side effects."
And in June last year, the financial regulator of South Korea amended the anti-money laundering rules that apply to crypto-exchanges in the country, requiring local banks to tighten control over the relevant Bank accounts.
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