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Bithumb and Other Major South Korean Exchanges Join Forces to Track Suspicious Transactions
The Korea Herald, a major South Korean English-language newspaper, reports that the country’s biggest cryptocurrency exchanges (Bithumb, Upbit, Korbit, and Coinone) will now cooperate in order to tackle money laundering and other types of criminal activities. Such a move is supposed to boost the legitimacy of the local cryptocurrency industry.
Alex DovbnyaKeeping criminals in crosshairs
In order to prevent any unusual transactions that involve voice phishing and pyramid schemes, the aforementioned exchanges have recently established a real-time communications connection for reporting any ‘black swan’ transactions that can be potentially linked to criminal activities. Exchanges are now able to instantaneously block their users’ accounts if they are related to suspicious transactions on other trading platforms.
The security pain points
South Korea is a burgeoning cryptocurrency market with one of the most progressive regulatory frameworks in the world, but its local exchanges are not immune to multi-million dollar hacks. Back in June, Bithumb (the number one exchange in South Korea) experienced a $31 mln hack, which led to a temporary suspension of deposits. Despite the hack, the Korea Blockchain Association (KBA) claimed that 12 exchanges passed their standards in July.
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