The operator of South Korea’s largest exchange by trading volume is reportedly rolling out an anti-money laundering solution to help appease financial regulators.
Blockchain technology research arm Lamda 256, of cryptocurrency exchange Upbit's operator Dunamu, has launched its VerfiyVASP solution for its exchange trading activity in Singapore.
The rule, which went into effect in 2019, applies to all virtual asset service providers (VASPs) and is enforced by the Financial Action Task Force (FATF) an intergovernmental anti-money laundering watchdog. It requires crypto companies to share personally identifiable information for transactions above a certain amount.
VASPs within the industry such as crypto exchanges, wallet providers and financial service providers need to report on transactions above $3,000 in the U.S. and €1,000 in Europe.
On the advice of the FATF, South Korea’s Financial Services Commission introduced its own anti-money laundering safeguards on March 25.
In June, Upbit, Bithumb, Coinone and Korbit engaged in a joint venture to develop a solution for the travel rule. A month later Dunamu opted out for fear of regulators anticipating the move as industry collusion, per the report.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.