A lot of regulators have had a blind eye towards cryptocurrencies because of its semi-anonymous and decentralized nature which is often used by people to launder monies. Understanding this money laundering evil that is halting regulations in favor of cryptos, four major cryptocurrency exchanges in South Korea have joined hands to tackle this menace.
Exchanges setup Hotline to share information in real time
According to the recent report published in South Korean media, leading South Korean crypto exchanges namely, Bithumb, Upbit, Korbit and Coinone have recently set up a hotline which can be used to share information on a real-time basis on any unusual and suspicious trading or transactions that are related to involve criminal acts, such as voice phishing and pyramid schemes.
With respect to the same an official of one of the operator was quoted saying
“They are now able to instantly check any wrongful transactions made at other exchanges and take necessary measures, such as blocking their own related accounts, “The cooperative step against money laundering via cryptocurrencies is expected to boost the soundness of the industry and to better protect consumers.”
Last year, a lot of government regulators and financial institutions that asked crypto to clean up its act if needs a mainstream acceptance. All major countries, be it the USA, Canada and Russia all have suggested measures to curb money laundering.
With so much of media around speaking of money laundering and cryptocurrencies, one has to still accept the fact that cryptocurrency industry is rapidly pulling up its socks and creating its own codes and conduct. Most exchanges are now following the Know Your Customer (KYC) and AML regulations while a lot of countries like Japan have self-regulatory guidelines and bodies monitoring any kind of activities which are not legal in nature.
While money laundering still remains an evil for cryptocurrencies, steps like setting up a real-time hotline by Korean exchanges is something worth the effort to clean the industry in near future. Steps like these give people and regulators confidence that cryptocurrencies won’t be another tool for people to launder black monies.
What do you think are the steps taken by crypto players good enough to halt money laundering? Do let us know your views on the same.