South Korea: Major Exchanges Join Forces to Stamp Out Money Laundering

By Anne W. | January 30, 2019
South Korea: Major Exchanges Join Forces to Stamp Out Money Laundering

Four major cryptocurrency trading platforms from South Korea, namely Bithumb, Upbit, Corbit and Coinone have established a real-time hotline to report any suspicious trading activities that may involve crimes, such as voice phishing and pyramid schemes.

According to the Korea Herald on Jan 28, the exchanges can “instantly check any wrongful transactions made at other exchanges and take necessary measures, such as blocking their own related accounts.” The initiative is allegedly part of a much larger effort among major crypto exchanges to work together in order to address a major challenge and constant criticism of the money laundering in the crypto ecosystem.

South Korea has reportedly suffered the loss of millions of dollars in cryptocurrency cybercrimes due to the hacks targeting exchanges like Coinrail (over $40 million) or Bithumb (over $30 million).

As TheCryptoSight reported earlier, only seven out of twenty one local crypto exchanges passed a compulsory security audit issued by the Korean government.

While Bithumb, Coinone and Korbit and four other major exchanges were among the one-third that satisfied the audit, the majority of firms inspected were found vulnerable to hacking attacks.

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