[Notice] Four Digital Asset Exchanges in South Korea launch joint venture to follow global anti-money laundering regulations
Four major digital asset exchanges in South Korea — Upbit, Bithumb, Coinone and Korbit — agreed to establish a joint venture on March 29, 2021 to comply with the ‘travel rule’, which will take effect in March next year.
The Travel Rule is a global regulation imposed by the Financial Action Task Force, on virtual asset providers (VASPs) obligated to collect all sender/receiver information when transferring digital assets to prevent money laundering.
This rule does not apply when virtual assets worth 1 million won or less are transmitted or to individuals. For traditional financial institutions, a SWIFT code has been widely used as the industry standard, while the digital asset industry has introduced travel rule solutions individually. The travel rule is reflected in Korea’s cryptocurrency law, officially called the Act on Reporting and Using Specified Financial Transaction Information.
The four cryptocurrency exchanges suggested that they decided to join forces to save time and effort as the grace period for the international regulation expires March 25, 2022. The four cryptocurrency exchanges joining hands to each other are the only digital asset exchanges that have succeeded in establishing partnerships with local banks to register real-name accounts in compliance with the newly revised law.