South Korean crypto exchanges to follow Coinone in confirming personal wallets

Major South Korean crypto exchanges consisting of Upbit, Bithumb and Korbit will follow Coinone’s lead in prohibiting transfers to non-verified wallets, market experts state.

Yesterday Coinone revealed that it would decline deposits from unproven personal wallets beginningJan 24 to minimize the threat of cash laundering. All Korean exchanges, consisting of Upbit, Bithumb, Korbit and 20 others, are anticipated to execute similar or comparable procedures as Coinone by or prior to March 25. The Korean federal government set the due date for exchanges to track coin deals on and off their platforms precisely.

Korean blockchain market expert Jun Hyuk Ahn informed Cointelegraph, “Korean exchanges are creating their own Travel Rule solutions in order to meet the requirements to operate post-March.”

“All the Korean exchanges are going to have to use some travel rule system by March because that’s when the government has set a deadline for them. Coinone just did it first.”

The guideline for exchanges will likewise assist the far eastern country entered into compliance with the Financial Action Task Force (FATF) “travel rule.”

According to anti-money laundering (AML) Compliance service Sygna, the travel guideline specifies that nationwide federal governments need to “ensure domestic exchanges share real-identity information with transmittal counterparties or face increased AML/CFT monitoring.”

These compliance terms for exchanges become part of a long series of regulative constraints for crypto exchanges which began with the real-name checking account requirement for all users. Before that guideline was carried out in 2018, crypto exchange accounts might be connected to a checking account owned by numerous people.

By Sep 2021, exchanges were needed to have Internet Security Management System (ISMS) confirmation and a single domestic bank partner which would release real-name accounts. All exchanges that might not satisfy the requirements were required to get rid of KRW sets from trading or suspend services completely. Financial: Financial Services Commission fined 8M lira for non-compliance versus cash launderingNov nation has actually grappled with worldwide FATF compliance concerns related to nonfungible tokens (NFT).

Globally regulators flip-flopped on their policy instructions concerning NFTs up until the most recent declaration from the South Korea specified onAs 24 that it would explore its alternatives to manage and tax NFTs.

Source, (*)’s exchanges are the outliers in abiding by the guideline. (*) of now, there are no other significant crypto area exchanges that need users to validate their personal wallets. (*).

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