The Korean cryptocurrency exchanges will follow the COINONE to verify the private wallet

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Source: Cointelegraph Chinese

Industry analysts said that major cryptocurrency exchanges, including UPBIT, BITHUMB, and KORBIT, will imitate Coinone to prohibit transfer to unwritten wallets.

Coinone announced yesterday that starting from January 24, it will refuse deposits from private wallets that have not been verified to reduce the risk of money laundering. All South Korean exchanges, including Upbit, Bithumb, Korbit, and 20 other exchanges, are expected to implement similar or the same measures as Coinone on March 25 or before. The South Korean government has set the time limit for exchanges to accurately track transactions inside and outside the platform.


South Korea’s blockchain industry analyst Jun Hyuk Ahn told Cointelegraph that “the South Korean exchange is creating its own travel rules solutions to meet the requirements of operation after March.”

“All South Korea’s exchanges will have to use some travel rules systems by March because the government has set the final period for them. Coinone just did this first.”

The exchange rules will also help this Far East country abide by the “travel rules” of the Special Working Group (FATF) of the Far East.

According to Sygna, a counter -money laundering compliance service agency, travel rules stipulate that governments must “ensure that domestic exchanges share real identity information with their opponents, otherwise they will face more anti -money laundering/anti -terrorism financing supervision.”

These compliance regulations for exchanges are part of a series of regulatory restrictions on cryptocurrency exchanges. These restrictions began to require all users to use bank real -name accounts. Before the rules were implemented in 2018, the cryptocurrency exchange account could be linked to the bank account owned by multiple individuals.

By September 2021, the exchange was required to conduct an Internet security management system (ISMS) verification and a domestic bank partner with a real -name account. All exchanges that do not meet the requirements are forcibly canceled the Korean won transactions or pause services.

The country has also been working hard to solve the global FATF compliance related to non -homogeneous tokens (NFT). The financial regulatory agency has been swaying in the direction of NFT’s policy, until the latest statement issued by the South Korean Financial Services Commission in the latest statement issued on November 24 that it will explore a plan for supervision and taxation of NFT.

Globally, South Korean exchanges are outsiders who abide by this rule. So far, there are no other large -scale encryption spot exchanges asking users to verify their private wallets.

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