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South Korean cryptocurrency exchanges step up on AML initiatives to counter money laundering practices

Jibin M George

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South Korean cryptocurrency exchanges step up on AML initiatives to counter money laundering practices
Source: Pixabay

The relative anonymity offered by the decentralized protocol of cryptocurrency transactions has despite its advantages, also offered a degree of security to those who engage in acts of money laundering. It is therefore welcome that four South Korean cryptocurrency exchanges are joining hands to take steps against such a possibility.

Despite some built-in checks, hackers, and criminals have been able to subvert the technology driving the cryptocurrency market and launder money for their criminal deeds. It is in light of such rising incidents that four leading South Korean cryptocurrency exchanges namely, Bithumb, Upbit, Corbit and Coinone have come together to implement an AML, or an anti-money laundering initiative which they believe, would put in place sufficient checks and balances discouraging any more cases of such acts.

Key to this AML initiated by the four exchanges is a hotline – established to share real-time information between exchanges and comparing notes on any unusual trading activities or transactions that may be associated with money laundering deeds. These may include those associated with voice phishing, pyramid schemes and other illicit trading activities that are often a front to launder money. Such a system to exchange real-time information on transactions allows exchanges to maintain a register of wallets suspected of illegal activities that can then be used to hone in on money laundering suspects in the future.



Each of these initiatives, the exchanges claim, will help foster a healthier environment for the trading of cryptocurrencies. Further, as reported by South Korea’s Yonhap News Agency, an operator for one of the exchanges said:

“They are now able to instantly check any wrongful transactions made at other exchanges and take necessary measures, such as blocking their own related accounts. The cooperative step against money laundering via cryptocurrencies is expected to boost the soundness of the industry and to better protect consumers.”

While there is no uniform standard to regulation and monitoring of suspicious activities such as money laundering in the cryptocurrency market [Most exchanges have KYC schemes for those holding wallets while some in Japan has self-regulatory guidelines and external bodies], the initiative taken by the four South Korean exchanges is a welcome step in ensuring the safety and security of crypto assets.





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XRP

XRP shorts overtake XRP longs as USD shorts increase 85 percent on April 17

Akash Anand

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XRP shorts overtake XRP longs as USD shorts increase 85 percent on April 17
Source: Pixabay

The cryptocurrency market’s volatile behavior was reflected in the ‘buy-in and sell’ sentiments. Despite the bear market taking over again, analysis of the market shows that there are some silver linings. XRP, the third largest cryptocurrency in the market, has not had a fantastic start to 2019 and this was even shown during the recent bullish spike.

XRP was one of the worst performers among the top 10 club at a time when some of the other currencies saw double-digit gains and Bitcoin [BTC] broke the $5000 barrier. New analysis, though, points to the fact that there has been a significant rise in XRPUSD longs on Bitfinex, some even registering record gains. Reports from BehindtheLedger stated that:



“Some are discussing record high XRPUSD longs on Bitfinex. It’s good to look at the ratio of shorts to longs (or vice versa if you prefer) rather than just the longs though. Doing so reveals that shorts have increased more than longs in the past few days.”

At a time when the XRP shorts are on a high, the USD shorts were up by a massive 85 percent on April 17. The analysis from behindtheledger also admitted:

“This isn’t a price prediction and frankly, this indicator probably isn’t reliable

But it’s always good to look at both sides of the equation.”

XRP’s trade has been majorly influenced by developments in its realm with the last major claim coming from Coincheck as the organization provided over-the-counter trading support for Ethereum and XRP on its platform. The exchange had announced:

“ETH XRP has been added to the target currency for large OTC transactions! We are pleased to announce that ETH and XRP have been newly added as target currencies at the Large OTC Trading Service, which has started on April 1, 2019.”





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