Four crypto exchanges have collaborated to fight money laundering via cryptocurrencies in South Korea. This is according to a report by a local media outlet Korea Herald.
According to the report, Bithumb, Upbit, Corbit, and Coinone are bringing their data together to ensure money laundering is minimized in the crypto sector. They will share ‘real-time’ wallet information on any suspicious activity linked to phishing attempts and pyramid schemes.
This latest development comes months after the government attempted to clamp down on crypto activities in the country. The effort was however met by resistance from investors and companies working in the crypto space.
The news also comes after South Korean money laundering rules were amended. The new rules require local banks offering services to crypto exchanges to monitor related accounts more closely.
Crypto exchanges in South Korea have endured a torrid time over the past year:
- In December 2017 amidst the price boom, crypto exchange Youbit filed for bankruptcy following two hacks.
- In May 2018, the Financial Supervisory Service in the country raided Upbit’s offices in Seoul. The regulators suspected that the exchange had falsified its balance sheets and deceived investors. However, Upbit was cleared after an audit was conducted.
- The following month, Bithumb and Coinrail suffered security breaches, with over 60 million USD lost in the process.
- Recently, two executives from South Korean crypto exchange Komid were given jail time after displaying fake trading volume to deceive investors. The exchange’s CEO Hyunsuk Choi was sentenced to three years in prison as he was accused of embezzlement also.