Major South Korean Exchanges Join Forces To Combat Money Laundering: Report

A new report is in the focus of today’s digital currency news, showing the newest initiative of four major South Korean cryptocurrency exchanges and their efforts to join forces in order to combat money laundering that is a common practice with cryptocurrencies like Bitcoin.

According to sources and their stories shared with the local news agency The Korea Herald on Monday (Jan. 28th), the names of exchanges include Bithumb, Upbit, Korbit and Coinone as all included in the “hotline” that is meant to help users report such crimes and pyramid schemes.

According to one anonymous representative of one of the operators, the exchanges will be able to instantly check any suspicious transactions and block the related accounts. Previously this month, we reported that seven of the 21 local exchanges operating in South Korea have received approval after a security audit.

During the audit, Bithumb, Coinone and Korbit (and four other exchanges) satisfied the investigators of the strength of their security measures. Still, the majority of firms inspected were found to be exposed to attacks.

Bithumb is now the world’s second largest exchange by the reported volume and is under some accusations of faking its trade volume. Despite this, Bithumb has denied all the allegations. Upbit, on the other hand, was also accused of falsely inflating its volume figures on three occasions.