The Travel Rule Has Been Complied With By Korean Crypto Exchanges
South Korean cryptocurrency exchanges have met the government’s deadline to comply with the so-called Travel Rule, but not everyone in the business is delighted with the legislation.
Starting today, any crypto transfers worth more than $821 will be flagged by Korean exchanges. User-verified wallets and a small number of exchanges who have accepted their anti-money laundering system will be able to send money over that amount.
The Travel Rule is a series of rules released by the Financial Action Task Force (FATF)
Financial Action Task Force an international financial watchdog, to assist authorities in tracking the movement of virtual assets between virtual asset service providers (VASPs), such as crypto exchanges and digital asset issuers.
The regulatory action, according to a source from a local centralized exchange, is a step forward for the country’s crypto business.
“The industry is now taking a step towards institutional acceptance and will work harder for mass adoption.”
There may be a problem for South Korea’s traders, who racked up $45.8 billion in crypto market value in 2021, in figuring out which exchanges they can transfer funds to and from. Among the big four exchanges (Upbit, Bithumb, Coinone, and Korbit), there are two Travel Rule systems. Each system functions slightly differently and requires international exchanges to follow its guidelines. If those guidelines are not followed, transfers will not be allowed.
According to the CEO of South Korea-based crypto VC Hashed, Simon Kim, these differences are likely to cause confusion and frustration among domestic traders. He feels that the Korean crypto community sees the mandate as “clearly over-regulation,” as he emphasized to Cointelegraph that:
“In a state where the infrastructure was not prepared, a regulatory body with low understanding was forced to push forward. It is expected that revisions will follow to an appropriate level with criticism from the Korean community.”
The blockchain ecosystems Klaytn and Ethereum, the NFT game Axie Infinity, and the decentralized exchange dYdX are all part of the Hashed crypto and Web3 portfolio.
According to local expert Jun Hyuk Ahn, Upbit is the country’s largest exchange, with approximately 78.3 percent of the exchange market share. It has implemented the Verify VASP program, which it developed in-house. Upbit currently supports transfers to and from Bblock, Gopax, Cashierest, Flat Thai Exchange, Aphrobit, Binance, Bybit, Okcoin, Crypto.com, Coinbase, BITFRONT, Bittrex, Bitbank.cc, Gate.io, Kraken, BitMEX, FTX US, and HARU Invest affiliates in Singapore, Indonesia, and Thailand.
Meanwhile, the CODE method has been implemented by Bithumb, Korbit, and Coinone. Coinbase, Kraken, Coincheck, bitFlyer, Bybit, Gemini, Coinlist Pro, Phemex, Bitbank, Line bitmax, Bitfront, FTX, and Binance are all supported.Domestic transfers are halted till the 8th of April.
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The Travel Rule Has Been Complied With By Korean Crypto Exchanges
South Korean cryptocurrency exchanges have met the government’s deadline to comply with the so-called Travel Rule, but not everyone in the business is delighted with the legislation.
Starting today, any crypto transfers worth more than $821 will be flagged by Korean exchanges. User-verified wallets and a small number of exchanges who have accepted their anti-money laundering system will be able to send money over that amount.
The Travel Rule is a series of rules released by the Financial Action Task Force (FATF)
Financial Action Task Force an international financial watchdog, to assist authorities in tracking the movement of virtual assets between virtual asset service providers (VASPs), such as crypto exchanges and digital asset issuers.
The regulatory action, according to a source from a local centralized exchange, is a step forward for the country’s crypto business.
“The industry is now taking a step towards institutional acceptance and will work harder for mass adoption.”
There may be a problem for South Korea’s traders, who racked up $45.8 billion in crypto market value in 2021, in figuring out which exchanges they can transfer funds to and from. Among the big four exchanges (Upbit, Bithumb, Coinone, and Korbit), there are two Travel Rule systems. Each system functions slightly differently and requires international exchanges to follow its guidelines. If those guidelines are not followed, transfers will not be allowed.
According to the CEO of South Korea-based crypto VC Hashed, Simon Kim, these differences are likely to cause confusion and frustration among domestic traders. He feels that the Korean crypto community sees the mandate as “clearly over-regulation,” as he emphasized to Cointelegraph that:
“In a state where the infrastructure was not prepared, a regulatory body with low understanding was forced to push forward. It is expected that revisions will follow to an appropriate level with criticism from the Korean community.”
The blockchain ecosystems Klaytn and Ethereum, the NFT game Axie Infinity, and the decentralized exchange dYdX are all part of the Hashed crypto and Web3 portfolio.
According to local expert Jun Hyuk Ahn, Upbit is the country’s largest exchange, with approximately 78.3 percent of the exchange market share. It has implemented the Verify VASP program, which it developed in-house. Upbit currently supports transfers to and from Bblock, Gopax, Cashierest, Flat Thai Exchange, Aphrobit, Binance, Bybit, Okcoin, Crypto.com, Coinbase, BITFRONT, Bittrex, Bitbank.cc, Gate.io, Kraken, BitMEX, FTX US, and HARU Invest affiliates in Singapore, Indonesia, and Thailand.
Meanwhile, the CODE method has been implemented by Bithumb, Korbit, and Coinone. Coinbase, Kraken, Coincheck, bitFlyer, Bybit, Gemini, Coinlist Pro, Phemex, Bitbank, Line bitmax, Bitfront, FTX, and Binance are all supported.Domestic transfers are halted till the 8th of April.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
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