Operator of South Korea's Largest Exchange Rolls Out 'Travel Rule' Solution in Singapore

The blockchain research arm of Upbit's operator has launched its VerifyVASP in Singapore, a solution for combating crypto money laundering.

Aug 17, 2021 at 7:36 a.m. UTC
Updated Sep 14, 2021 at 1:40 p.m. UTC

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.

Meanwhile, South Korea will see Dunamu's "travel rule" solution rolled out for Upbit next month, according to a report by The Korea Herald on Tuesday.

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 Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

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. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
Kwon Proposes Forking Terra, Nixing UST Stablecoin in 'Revival Plan 2'

"$UST peg failure is Terra’s DAO hack moment - a chance to rise up anew from the ashes," Terraform Labs CEO Do Kwon said.

"$UST peg failure is Terra’s DAO hack moment - a chance to rise up anew from the ashes," Terraform Labs CEO Do Kwon said.

2
Bitcoin Struggles at $27K-$30K Support Zone; Resistance at $35K

BTC's upside appears limited despite short-term support.

BTC's upside appears limited despite short-term support.

3
Art in the Age of the Metaverse

4
Crypto Funds Saw Year's Highest Inflows as Terra Crisis Crashed Markets

Some $274 million flowed into digital asset funds as investors bought the dip, amid a broad crypto-market sell-off triggered by Terra's turmoil.

Some $274 million flowed into digital asset funds as investors bought the dip, amid a broad crypto-market sell-off triggered by Terra's turmoil.