Four major South Korean cryptocurrency exchanges have reportedly joined their forces so as to combat money laundering, sources told local press agency The Korea Herald on Monday, Jan. 28.
Quoting a report from South Korean news outlet Yonhap, the articles notes that Bithumb, Upbit, Korbit and Coinone have reportedly established a hotline where users will share data on any unusual trading or payments that would possibly be associated with crimes, like pyramid schemes.
According to an anonymous representative of 1 of the operators, the exchanges can thereby be able to instantly check any suspicious transactions and now block the related accounts.
In early Jan, Top Market Group reported that seven of 21 local crypto exchanges have received approval from the South Korean government once a security audit.
During the audit — that happened between September and December 2018 — Bithumb, Coinone and Korbit, together with four different major exchanges, satisfied investigators of the strength of their security measures. However, the majority of companies inspected were found to be exposed to attacks.
Bithumb, that is presently world’s second-largest exchange by reported volume, was recently suspect of faking its trade volumes since late summer 2018, following a $30 million hack in Gregorian calendar month. In line with crypto ratings and analytics service emotion, the exchange used wash trading and demonstrated strange activity spikes, this could be an indication of trading manipulations. However, Bithumb has denied all the allegations.
Upbit was conjointly suspect of falsely inflating its volume figures on 3 occasions between Oct 2017 and December 2018. Despite the continuing legal investigation, the exchange conjointly denies all accusations.
In neighboring Japan, 16 local crypto exchanges have conjointly formed a self-regulatory body, dubbed the Japanese Virtual Currency Exchange Association (JVCEA), following the Jan hack of over $534 million of NEM from Japan-based crypto exchange Coincheck. In October, the JVCEA gained approval to oversee the crypto space from Japan’s monetary Services Agency.
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