quora

AML Compliance – Korean Crypto Exchanges Join Hands to Fight Money Laundering

AML Compliance

Cryptocurrency has been notoriously criticised for money laundering and other illicit activities ever since its inception. But with the increasing crack down on money laundering activities globally by organizations like FATF, financial regulators have been urging crypto exchanges to comply with anti-money laundering measures.

Owing largely to its decentralised nature, the crypto industry has been more often than not used for illegal activities by all sorts of criminals. Be that as it may, it is also true that Bitcoin or any other cryptocurrency for that matter was not created for this purpose. If anything the whole blockchain structure is supposed to keep all transactions completely transparent.

Nevertheless, after constant urging from various regulators, cryptocurrencies have been scrambling to meet all AML compliance measures. In light of regulating crypto companies and exchanges, three crypto exchanges in Korea have teamed up to address the issue.

Leading Exchanges set up a Hotline to Combat Money Laundering

Four leading exchanges in South Korea i.e. Coinone, Upbit, Bithumb and Corbit have recently set up a hotline that will receive any information regarding money laundering, or any other illicit activities, in real time. Crypto has been known to be used for many cyberscams including online identity theft, phishing or Ponzi schemes.

Read: KYC and AML Compliance can help cryptocurrencies to earn legitimacy

An official explained that any illicit activity would instantly be reported on the hotline and the required actions would be taken immediately. This he hoped would increase the credibility of the industry as a whole and would be productive in protecting the users as well.

With an increased focus world over to restrain money laundering activities in every form, every major country has asked crypto exchanges to implement anti-money laundering (AML) compliance measures. And it is true that many exchanges and crypto companies have been doing their best to comply with such measures put forth by each of their governments.

Effective Fraud Prevention Solutions for Crypto

Pursuant to the regulatory measures, cryptos have also been setting up fraud detection and prevention techniques to fight scams and frauds. One of these measures is Know Your Customer (KYC) verification and AML checks. They use identity verification through document and face verification to authenticate the users in order to gauge their legitimacy. Where steps like the ones taken by the South Korean exchanges are laudable, there is a dire need for more robust fraud prevention measures.

Shufti is a leading SaaS product providing such fraud prevention measures through identity verification to more than 230 countries across the globe. It implements KYC verifications through an AI-based authentication procedure, allowing businesses to verify their users in real time. Shufti also offers AML checks from all major regulatory authorities operating across the globe. It is seamless and can be easily integrated into a web-based interface of any given business.

Related Posts

Blog

A Fintech’s Journey to 100% Compliance and Rapid Growth

Read on to learn about the keys to My EU Pay’s success. Staying Competitive as a Fintech Founded ...

A Fintech’s Journey to 100% Compliance and Rapid Growth Read More

Blog

Identity Verification Isn’t Just for Compliance Anymore

As the article indicates, that fight involves identity verification becoming a mainstream phenome...

Identity Verification Isn’t Just for Compliance Anymore Read More

Blog

The State of Fraud Detection & Prevention in 2024 | Ready, Set, Fraud

Decoding the 2023 Fraud Landscape | Analyzing Shufti’s Millio...

The State of Fraud Detection & Prevention in 2024 | Ready, Set, Fraud Read More

Blog

Revolutionizing the Finance Sector | VKYC’s Impact on Identity Verification in 2024

Video KYC (VKYC) is a method of verifying the identity of an individual or entity by leveraging v...

Revolutionizing the Finance Sector | VKYC’s Impact on Identity Verification in 2024 Read More

Blog

A 2024 Overview of Identity Document Forgery

What is Document Forgery: The Common Types  Identity document forgery is a serious crime that can...

A 2024 Overview of Identity Document Forgery Read More

Blog

Harnessing the power of AML Screenings to Uncover Politically Exposed Persons [PEPs]

The acronym Politically Exposed Persons [PEPs] first emerged in the 1990s, known as Senior Foreig...

Harnessing the power of AML Screenings to Uncover Politically Exposed Persons [PEPs] Read More

Blog

Elevated Business Security: A Comparative Analysis of Identity Proofing and Identity Verification

In general, identity proofing and identity verification are essentially the same processes, as th...

Elevated Business Security: A Comparative Analysis of Identity Proofing and Identity Verification Read More

Blog

Investor Onboarding | Navigating the Challenges of Digitization

Investor onboarding is introducing new investors to a financial or investment platform while scre...

Investor Onboarding | Navigating the Challenges of Digitization Read More

Blog

A Fintech’s Journey to 100% Compliance and Rapid Growth

Read on to learn about the keys to My EU Pay’s success. Staying Competitive as a Fintech Founded ...

A Fintech’s Journey to 100% Compliance and Rapid Growth Read More

Blog

Identity Verification Isn’t Just for Compliance Anymore

As the article indicates, that fight involves identity verification becoming a mainstream phenome...

Identity Verification Isn’t Just for Compliance Anymore Read More

Blog

The State of Fraud Detection & Prevention in 2024 | Ready, Set, Fraud

Decoding the 2023 Fraud Landscape | Analyzing Shufti’s Millio...

The State of Fraud Detection & Prevention in 2024 | Ready, Set, Fraud Read More

Blog

Revolutionizing the Finance Sector | VKYC’s Impact on Identity Verification in 2024

Video KYC (VKYC) is a method of verifying the identity of an individual or entity by leveraging v...

Revolutionizing the Finance Sector | VKYC’s Impact on Identity Verification in 2024 Read More

Blog

A 2024 Overview of Identity Document Forgery

What is Document Forgery: The Common Types  Identity document forgery is a serious crime that can...

A 2024 Overview of Identity Document Forgery Read More

Blog

Harnessing the power of AML Screenings to Uncover Politically Exposed Persons [PEPs]

The acronym Politically Exposed Persons [PEPs] first emerged in the 1990s, known as Senior Foreig...

Harnessing the power of AML Screenings to Uncover Politically Exposed Persons [PEPs] Read More

Blog

Elevated Business Security: A Comparative Analysis of Identity Proofing and Identity Verification

In general, identity proofing and identity verification are essentially the same processes, as th...

Elevated Business Security: A Comparative Analysis of Identity Proofing and Identity Verification Read More

Blog

Investor Onboarding | Navigating the Challenges of Digitization

Investor onboarding is introducing new investors to a financial or investment platform while scre...

Investor Onboarding | Navigating the Challenges of Digitization Read More

Take the next steps to better security.

Contact us

Get in touch with our experts. We'll help you find the perfect solution for your compliance and security needs.

Contact us

Request demo

Get free access to our platform and try our products today.

Get started