South Korea's five major cryptocurrency exchanges announce compliance strategies for monitoring illegal activities.

Jul 28, 2023109

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According to a statement from the Financial Services Commission (FSC) of South Korea, the country's financial intelligence department held a meeting with virtual asset service providers (VASPs) to strengthen regulatory compliance. The top five cryptocurrency exchanges in South Korea, including Upbit, Bithumb, Coinone, Korbit, and Gopax, have all created compliance systems to monitor illegal activities. Each exchange has implemented various measures such as AI-based anomaly detection systems, automatic termination of trading applications when money laundering transactions are detected, enhanced management and monitoring of risk wallet addresses, real-time management systems and secondary review systems for suspicious transaction reports, and the establishment of a hotline to respond to requests related to criminal activities. The participants have committed to ongoing dialogue and plan to hold meetings every 2-3 months to maintain this commitment.

According to News.bitcoin, a meeting was held between the Financial Services Commission (FSC) of South Korea and virtual asset service providers (VASPs) to strengthen regulatory compliance. The top five cryptocurrency exchanges in South Korea (including Upbit, Bithumb, Coinone, Korbit, and Gopax) have all created compliance systems to monitor illegal activities.

The meeting revealed that Upbit has utilized artificial intelligence (AI) to create an abnormal transaction detection system. Bithumb has developed a feature that automatically terminates transaction applications when money laundering transactions are detected through the installation of remote control applications. Coinone has strengthened the management and monitoring of "risk wallet addresses" related to financial incidents. Korbit has introduced real-time management systems and secondary review systems for suspicious transaction reports (STR) at each stage. Gopax has established a hotline to respond immediately to requests for account freezing related to crimes such as voice phishing.

Through collective commitment, the participants have pledged to strengthen the common dialogue around improving compliance capabilities. They plan to hold meetings every 2-3 months in the future to maintain this commitment.