South Korea’s four largest digital currency exchanges, Upbit, Coinone, Bithumb, and Korbit have announced a shared initiative to increase anti-money laundering (AML) efforts and promote a healthier trading environment.
According to a press release CoinReport received from PR firm Uproar, the four exchanges’ respective teams working specifically to detect fraud and protect users will establish a dedicated hotline for AML issues. Through the hotline, wallet data involving trades with suspected connections will be shared in real time to voice phishing, pyramid schemes, predatory lending and other illegal activities, enabling pertinent exchanges to protect users by stopping further asset transfers.
It is expected of the exchanges to offer considerably superior user protection by operating a joint database of shady wallet addresses. All four exchanges can identify a scammer looking to use mutliple exchanges to send assets to the same wallet and prevent such activities from happening via the collective database.
The AML initiative by these four digital currency exchanges is expected to yield significant results, as the exchanges presently have effectual fraud detection and user protection practices. Moreover, they have experience running bank-authenticated virtual accounts, bringing about strong relationship with conventional financial institutions.
Together with ISMS authentication by individual exchanges and the Korea Blockchain Association’s self-regulatory framework, the new drive will serve a crucial part in bettering the general health of the industry.
The news release we received said the four exchanges intend to broaden the initiative and enhance productivity by adding more exchanges that share high AML standards.
Image credit – Public domain image by Web-dev-chris