Runs On Your Cloud
No Data Sharing
No Contract Required
Explore Now
Face Verification
Address Verification
Document Verification
Age Verification
VideoIdent
Fast ID
eIDV
NFC Verification
Consent Verification
Business Verification
Due Diligence
Investor Verification
E-Signature
Behavioural Biometrics
Device Fingerprinting
MFA
AML Screening
Business AML Screening
User Risk Assessment
Transaction Screening
Adverse Media Screening
Identity Verification
KYC
KYB
KYI
Bonus Abuse
Fraud Prevention
Deepfakes
Banking
Crypto
Fintech
Forex
Gaming
Gig Economy
Marketplace
Social Networks
Product Managers
Compliance Officers
Fraud Analyst
Global Trust Platform
Journey Builder
Vendor Comparison
Content library
Blogs
News
Reports
Insights
Knowledgebase
ROI calculator
Blind Spot Audit
Deepfake Detection
Liveness Detection
Document Originality
Document Deepfake
Events & Webinar
Podcast Studio
Spotlight Studio
API Documentation
Mobile SDKs
Service Status
Help Center
Contact Us
Technical Support
Compliance
Supported Document
About
Career
Press Release
Certifications
Partnership
Awards
South Korea’s Largest Crypto Exchange Upbit Registers with KoFIU for AML
Upbit is reportedly the first South Korean crypto exchange to register the Korean Financial Intelligence Unit (KoFIU) for AML.
KoFIU’s new Anti-Money Laundering (AML) rule came into effect on March 25, 2021 and stated that all cryptocurrency exchanges register with the unit before September 24, 202. As per the new rule, all crypto companies are liable to comply with the AML requirements, Customer Due Diligence, suspicious transaction reporting, and real-name accounts.
Upbit, the largest crypto exchange of the country, has registered with the KoFIU following this rule. This step has come into effect following the authority’s claim of blocking websites of crypto exchanges that fail to meet the September deadline. Apart from the crypto sector, foreign exchanges are also asked to register with the KoFIU if they operate in South Korea.
The regulators are coming, and Upbit is trying to play nice. The crypto exchange just reportedly filed with the Korean Financial Intelligence Unit. https://t.co/JV1nQVSmek
— Cointelegraph (@Cointelegraph) August 23, 2021
Upbit has partnered with K-bank for the purpose and will be implementing real-name verification of its customers, reports claim. Three other key crypto exchanges of the country have formed similar partnerships with banks to meet AML requirements. The Vice Chairman of the Financial Services Commission (FSC), Doh Gyu-sang, said on August 20 that one or two more crypto companies are likely to register before the end of this month.
Any local crypto platform that fails to comply with the new rule will face an outright ban on operating in South Korea. Exchanges have to establish partnership with banks and report real-name bank accounts for all their customers in order to register with the FIU. This has proved to be a challenge for crypto exchanges because banks avoid taking responsibility for any misconduct.
As of today, there are 61 crypto trading platforms operating in South Korea and according to FSC, none of the VASPs that were consulted in July are ready to meet the AML requirements.
Suggested Read: South Korea to Penalize the Non-Compliant Crypto Companies
