South Korean Crypto Exchanges Now Support Cross-Platform Withdrawals

Major South Korean crypto exchanges have added support for seamless withdrawals and deposits between exchanges, reports said on Monday.

The move is a positive development for local crypto traders, and comes under new rules adopted South Korea’s Financial Action Task Force’s (FATF) travel rule. It could potentially help perk up local crypto trade after the FATF travel rules sparked a decline in trading activity.

VerifyVASP and CODE solve a major concern

A month after South Korea imposed the new rules, Upbit, a local cryptocurrency exchange, declared that now users can withdraw their cryptocurrency from various platforms like Bithumb, Korbit, and Coinone. It is being reported that a technical test between crypto services providers VerifyVASP and CODE was launched successfully.

Earlier, Bithumb, Korbit, and Coinone joined hands to comply with FATF rules to build Connect Digital Exchanges (CODE). While Upbit operator Dunamu created VerifyVASP, a decentralized protocol for Secure data transfer.

This move has solved a very big problem for every South Korean cryptocurrency users. Since the regulation adoption, users were unable to connect with platforms and move digital assets among the leading crypto platforms. Meanwhile, crypto holders are still not able to transfer big amounts of digital assets to their other e-wallets.

South Korea’s FATF rules to counter illegal activities

The FATF travel rules enable the virtual digital service providers to gather details of the two individuals involved in any transaction made of over $1,000. South Korea agreed to comply with the rules on all transactions done over 1 million Korean won (approx $800). These regulations were eventually restricting the users to do heavy transactions.

On the other hand, experts believe that FATF’s regulation adoption is creating some inconvenience but this will surely help to counter the illegal activities and protect crypto holder’s interests.

South Korea is already on its way to becoming a crypto friendly hub. Recently, the nation elected the Yoon Suk-yeol, an advocate of cryptocurrency, as its president. Meanwhile, the South Korean government recently gave approval to GOPAX to become the fifth platform to provide cash to crypto services for the users.