These measures are important efforts to prevent illegal traffic of assets, money laundering, hacking and other crimes related to the crypto market and the exchange of cryptocurrencies
In a recent publication, it was reported that several of the largest exchanges in South Korea agreed to make a strong alliance in order to reduce or end transactions with cryptocurrencies that may have a criminal origin.
It was disclosed in a report published by the local press of that Asian country that exchange companies such as Bithumb, Upbit, Coinone, Korbit, inter alia, formed a strategic alliance to be able to face acts that could harm their businesses. The objective is to face unscrupulous people looking to do money laundering, massive theft or significant hacking in the different platforms that operate in South Korea.
One of the main measures taken by these powerful exchange houses is to enable a telephone line that will be available in order to allow any user, company, institution or individual person make a report of a possible misuse of any of its platforms, and so to be able to conduct the corresponding investigation, making a formal complaint to the qualified police entities.
According to the report, it is known that the intention is to reduce suspicious negotiations that are linked to the business of the purchase and sale of cryptoactives, which has become increasingly common in the crypto market. But the main idea is not to penalize transactions with cryptocurrencies, but rather to prevent transactions within this business from occurring where the assets are of doubtful origin. We can find among the most frequent money laundering, hacking, or scams with pyramid schemes.
A source linked to these exchange houses revealed that a system that can monitor all the transactions fulfilled was developed. In this way, it is able to investigate the use of those assets. The intention is to authenticate that the assets are legal and avoid new difficulties.
This platform, which will be used by the exchange offices, will be able to instantly audit the assets which enter its system and review the transactions that may be suspicious of a crime. This is the main process the program will execute.
At the beginning of this year it was known that the exchange houses which operate with cryptocurrencies had been audited by the regulatory agencies of South Korea and that more than 21 exchange offices were authorized to operate normally.
Among these security audits, companies such as Bithumb, Coinone and Korbit, demonstrated to the regulatory authorities that their security systems are high technology and that they represent an adequate level of protection. Although other companies could not prove the same, it is considered that the largest exchange houses have what it takes to be operational.
On the other hand, it is known that exchange houses like Bithumb, and Upbit were accused of falsifying statistics of volumes, negotiations, purchase and sale of assets, both companies denied the accusations, although Upbit is facing different investigation procedures by the authorities.
By María Rodríguez