Crypto exchanges, including Upbit, Bithumb and Korbit, will follow Coinone’s lead in banning transfers to non-verified wallets.
Coinone announced that it would reject deposits from unverified private wallets starting 2022, to reduce the risk of money laundering. All Korean exchanges, including Upbit, Bithumb, Korbit and 20 others, are expected to have implemented similar or identical measures as Coinone by or before March. The Korean government set the deadline for exchanges to track coin transactions on and off their platforms accurately.
The rule for exchanges will also help the East Asian nation come into compliance with the Financial Action Task Force Travel Rule.
According to Anti-Money Laundering (AML) compliance service Sygna, the Travel Rule stipulates that national governments must “ensure domestic exchanges share real-identity information with transmittal counterparties or face increased AML/CFT monitoring.”
These compliance stipulations for exchanges are part of a long series of regulatory restrictions for crypto exchanges that started with the real-name bank account requirement for all users.
