Korea’s 5 Largest Exchanges Join Meeting To Enhance Compliance Measures

Key Points:

• The Korea Financial Intelligence Unit (FIU) held a meeting with virtual asset service providers (VASPs) to strengthen regulatory compliance.
• The top five cryptocurrency exchanges in South Korea, including Upbit, Bithumb, Coinone, Korbit, and Gopax, have all created compliant systems to monitor illegal activity.
• The exchanges have all established their compliance measures and plan to meet every 2-3 months to maintain compliance commitments.

According to a statement, the Korea Financial Intelligence Unit (FIU) held a meeting with virtual asset service providers (VASPs) to strengthen regulatory compliance.

“Since the role of virtual asset operators is very important as the main gateway to prevent illegal activities, we plan to strengthen the system to encourage compliance with the law and improve the ability to predictability of laws and systems to assist operators in ensuring compliance with autonomy,” said Lee Yoon-soo, head of Korea’s Financial Intelligence Unit (FIU).

The top five crypto exchanges in South Korea under DAXA, including Upbit, Bithumb, Coinone, Korbit, and Gopax, all participated and introduced the current state of each company’s organization and human resources to respond to virtual assets crime. Each exchange has created its compliance systems to monitor illegal activity.

The meeting revealed that Upbit had created an anomalous transaction detection system using artificial intelligence (AI). Bithumb has developed a feature that automatically terminates trading applications when a remote control application is installed, and money laundering is detected.

In addition, Coinone has increased the management and supervision of “risky wallet addresses” related to financial accidents. Korbit introduced a real-time management system and a secondary review system for each stage of the Suspicious Transaction Report (STR).

Gopax has also set up a hotline to immediately respond to account suspension requests related to crimes like voice fraud.

Through collective engagement, participants commit to strengthening the common dialogue around improving compliance. They plan to meet every 2-3 months in the future to maintain this commitment.

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