Bithumb Partners With Chainalysis After The Passing Of New Korean Crypto Regulations
Bithumb Partners With Chainalysis After The Passing Of New Korean Crypto Regulations
March 12, 2020
Bithumb Partners With Chainalysis After The Passing Of New Korean Crypto Regulations
Bithumb Partners With Chainalysis After The Passing Of New Korean Crypto Regulations
March 12, 2020

Bithumb, the major South Korean cryptocurrency exchange, announced that it has partnered with Chainalysis, the crypto forensics firm, following the passing of new Korean crypto regulations on March 10, 2020.

It has been reported that Bithumb will employ Chainalysis’s “Reactor” investigations tool to examine suspicious activity on its platform in a bid to comply with Korea’s recently amended Special Financial Transactions Information Act.

However, certain provisions in the act will take 12 months to come into effect, with the new apparatus expected to be fully implemented after a further six months. As such, all South Korean crypto exchanges must operate with full compliance by September 2021.

Sungmi Lee, Bithumb’s head of compliance, predicts lawmakers to further strengthen the new legislative apparatus in the near future, stating:

“We anticipate further updates following last week’s vote making it even more important for us to have support available in our local language.”

On March 5, South Korea’s National Assembly passed the revised bill, introducing a permit system for the nation’s virtual asset service providers (VASPs).

ALSO READ :  Malware Group Evil Corp Launches A New Ransomware Asks To Pay Million Dollar Ransom

It has been analyzed that Korean exchanges must now report their operations to the country’s Financial Intelligence Unit, and are required to collect “real name-confirmed accounts” from banks. Reporting failures can be penalized with up to five years in prison or $42,000 worth of fines.

Exchanges must also have their systems certified by the Korean Internet Security Agency (KISA). Due to the time and expense involved in attaining KISA certification, only four VASPs have completed the process so far — Bithumb, Upbit, Coinwon, and Korbit.

Thus, Jason Bonds, the Chief Revenue Officer of Chainalysis, stated:

“As cryptocurrency use in South Korea continues to grow, new regulations such as this will make blockchain analysis solutions like Chainalysis vital for compliance.”

Source: prnewswire.com | cointelegraph.com | Image: twitter.com


Disclaimer

Crypto News Point a news platform of Digital Notice Media Labs is primarily a regular publication of information, commentary and articles focused extensively on fintech, blockchain technology, cryptocurrency, blockchain-based tokens, cryptocurrency market trends, and trading strategies. We do not provide individually tailored investment advice and does not take a subscriber’s or anyone’s circumstances into consideration when discussing investments, nor is Crypto News Point registered as an investment adviser or broker-dealer in any jurisdiction. Information contained herein is not an offer or solicitation to buy, hold, or sell any digital assets.

Affiliate Disclosure: To help support the work we do here at CNP, we often link to products and deals from around the web. Should you buy some of these, we may get a portion of the sale.

We in generally gather content from the major websites. In every article there is always a clear link and attribution to the source publication. If you have any issue with any of our published content taken from your site, kindly let us know so that we can take appropriate action. In any case, the content of the pages of this website is for your general information and use only. It is subject to change without notice.

You May Also like

Ishita Bora

Ishita Bora is a Senior Content Creator at Digital Notice Media Labs with an experience of 1 year. She has completed her Master's Degree in Language and Linguistics in 2019 from Gauhati University, India. Her interest lies in blockchain technology and cryptocurrency space, as she loves writing about blockchain and other blockchain-related articles. Currently, she is working on blockchain-based news, reviews, featured articles, and guides.
Share This

Share This

Share this post with your friends!