South Korean Exchanges Going All Out to Fight Money Laundering

While cryptocurrencies offer the world multiple advantages, the entire concept of a decentralized digital currency doesn’t come without loopholes. One of the major problems that plague the crypto market almost everywhere is money laundering. And considering the amount of cases that have come to light, there are several countries around the globe taking preventive measures against it.

One of those countries is South Korea. According to a report by the local news agency, The Korea Herald on Monday, on Jan. 28, four of South Korea’s major cryptocurrency exchanges are joining forces in order to fight and put a stop to money laundering.

According to the report from South Korean news outlet Yonhap, the four cryptocurrency exchanges are, Bithumb, Upbit, Korbit and Coinone. Reportedly they have established a hotline, where users will be able to share information regarding any unusual trading or payments, which could potentially be linked to crypto crimes. The exchanges will be able to check any suspicious transaction in an instant, and they will also have the power to immediately block the related accounts.

South Korea has been extremely stringent in the past couple of months when it comes to the crypto market. Earlier this month the country’s government carried out a security audit for all the crypto exchanges operating in the country. And only seven out of 21 local crypto exchanges managed to receive an approval. Amongst those seven were Bithumb, Coinone and Korbit along with four other major exchanges.

Report: Only 7 Crypto Exchanges Make It Through South Korea’s Security Police

However, even the exchanges that did get the approval aren’t squeaky clean. Bithumb, despite being the world’s second largest exchange, was accused of faking its trade volume. As per the crypto ratings and analytics service CER, the exchange used wash trading and demonstrated strange activity spikes, which might be a sign of trading manipulations. The exchange, however, denied all such allegations.

Even Upbit was alleged guilty for inflating its volume figures falsely, between October and 2017 and December 2018. Upbit too, denied all accusations.

With so many exchanges being called out for fraud, it is imperative that governments around the world take such rigid measures, in order to protect both the integrity of cryptos and investors.

For further updates, stay tuned to BlockPublisher.

Abeer Anwaar

Abeer holds a Bachelors degree in Media studies and covers blockchain startups for BlockPublisher. An optimist, excels in the art of the written word and swears by the joy of all things sweet. Contact the editor at editor.startups@blockpublisher.com

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