Skip to main content

Verification of private wallets: South Korean crypto exchanges following example from Coinone


 

South Korean exchanges will ask their users to verify their external wallets in order to comply with the new compliance requirements.


Major South Korean crypto exchanges, including Upbit, Bithumb and Korbit, want to follow the example of Coinone and ban transfers to unverified wallets, according to industry analysts. 


On Wednesday, Coinone announced that the exchange would reject deposits from unverified private wallets from January 24, 2022 to prevent money laundering. All Korean exchanges, including Upbit, Bithumb, Korbit and 20 others, are expected to implement similar or the same measures as Coinone by March 25. The Korean government has set a deadline for exchanges to closely track coin transactions on and off their platforms.


Korean blockchain industry analyst Jun Hyuk Ahn told Cointelegraph, "Korean exchanges are developing their own solutions to meet requirements by March."


"All Korean exchanges must have a tracking system in place by March because the government has given them a deadline. Coinone just did it first."

With this regulation for stock exchanges, the state can also comply with the requirements of the Financial Action Task Force (FATF).


According to the anti-money laundering compliance service provider Sygna , the so-called travel rule stipulates that governments "ensure that domestic exchanges exchange real identity information with transmission partners, or they must monitor measures to combat money laundering and terrorist financing more closely".


These compliance requirements for exchanges are only part of many regulatory restrictions for crypto exchanges. One of the first requirements was that bank accounts could only be used with real names . Before this regulation was introduced in 2018, crypto exchange accounts could be linked to a bank account that belonged to several people.


By September 2021, the exchanges had to go through a verification by the Internet Security Management System and were only allowed to have a single domestic banking partner who opened accounts under real names. Exchanges that failed to meet the requirements had to remove their pairs with the Korean won or shut down entirely .


The country has also faced difficulties with the FATF's compliance requirements related to non-fungible tokens (NFTs). Financial regulators have not had a clear political stance on NFTs. Just recently, the financial regulator announced on November 24th that it would examine its options for regulating and taxing NFTs .


From a global perspective, the South Korean stock exchanges are pioneers in complying with these regulations. So far, there are no other major crypto exchanges that require users to verify their private wallets.

My Top Picks
Honeygain - Passive earner that pays in BTC or PayPal
MandalaExchange -The Best no KYC crypto Exchange! 
BetFury - Play And Earn BFG for daily Bitcoin and ETH dividends!
Pipeflare - Faucet that pays in ZCash and Matic, Games pay in DAI
Womplay - Mobile dApp gaming platform that rewards in EOS and Bitcoin
Cointiply - The #1 Crypto Earning Site
Torum - Join the latest Social Network and earn TRM for Free! 
LiteCoinPay - The #1 FaucetPay earner for Litecoin 
Upland - Collect Digital Properties & Test Your Skills
LBRY/Odysee - YouTube Alternative that lets you earn Money by viewing videos!
FaucetPay - The #1 Microwallet Platform
FREEBTC - The #1 FaucetPay earner for Satoshi's
FaucetCrypto - An earning/faucet site that pays out instantly
FireFaucet - An earning site that pays better for some than Cointiply
DogeFaucet - Dogecoin Faucet
xFaucet - BTC, ETH, LTC, Doge, Dash, Tron, DGB, BCH, BNB, ZEC, FEY - Claim every 5 minutes
Konstantinova - BTC, ETH, LTC, Doge, Dash, Tron, DGB, BCH, BNB, ZEC, USDT, FEY, 25 Claims Daily

Comments

Popular posts from this blog

From offchain to offchain: Statechains meets Lightning

  Without a doubt, the most significant off-chain Bitcoin solution is the Lightning network. But in its wake, the statechain has emerged as an intriguing replacement. There is currently a proposal to link the two offchain networks. From an ocean, for example, you can see sunbeams glistening in the water, waves rippling, and possibly a jellyfish drifting toward the light. But you only see a small portion of it. The distance from the sea's surface to its bottom is hundreds of meters. It has dozens of different fish species swimming in it, crabs and starfish crawling on the bottom, shells clinging to rocks, and sea plants climbing up. A completely new world starts where your gaze diverges. You can picture a blockchain like Bitcoin, just like the sea. What you see on the outside is only a small portion of what is actually there; the set of UTXOs (coins) and transaction history that full nodes store are just the beginning of a much larger world. It's the plan, at least. With Bitcoin

MSP Recovery and Tokenology aim to optimize healthcare with the help of Polygon

  MSP Recovery LLC, a Miami, US-based healthcare provider with an estimated enterprise value of $32.6 billion, is partnering with Web3 company Tokenology to jointly launch a new blockchain platform called Lifechain. Lifechain wants to leverage the verifiable and transparent nature of blockchain technology to aggregate medical care claims, medical expense reports and patient data and streamline their processing. For this purpose, MSP Recovery launched its own LifeWallet in January, which already has 1 million users. In addition to the wallet and blockchain platform, an associated crypto token called LifeCoin is also used. The press release explains that the primary purpose of the system is to enable secondary healthcare providers to more effectively bill health insurance companies for their costs. “The number of medical claims tokenized going forward will surpass $50 million per day by 2024. For this we need scalability, security and sustainability, which we have only found with Polygon

British financial regulator criticizes cooperation between Binance and Paysafe

  The British financial regulator FCA has expressed concerns about the partnership between market-leading crypto exchange Binance and payment service provider Paysafe. As the British regulator complains, the partnership gives Binance access to the influential British payment network Faster Payments Service (FPS), from which the crypto exchange was previously cut off. Last June, the FCA ordered Binance to stop all business activities in Great Britain. As a result, prominent banks such as Barclays have terminated their cooperation with the leading crypto trading platform . Through the cooperation with Paysafe, Binance can now again offer deposits in British pounds sterling and transactions within the European Payments Area (SEPA). However, this fact is a thorn in the side of the FCA, as it classifies the crypto exchange as a “considerable risk factor”. However, the financial regulator sees little room for maneuver to counteract this, as the Financial Times reports . “ Paysafe understands