Domestic cryptocurrency exchanges are spurring to strengthen AML (Anti Money Laundering) in preparation for Special Act.
According to the industry professions on June 3, domestic cryptocurrency exchanges have recently focused their attention on strengthening AML. The intention is to fully prepare as the “Act on Reporting and Utilization of Specific Financial Transaction Information (Special Act)” is enforced in March 2021.
The Special Act passed the National Assembly in March and went through a one-year grace period to take effect in March next year. Although no specific enforcement ordinance has yet been enacted, exchanges have begun strengthening AML to meet the reporting requirements in line with the core purpose of the Special Act called ‘Anti Money Laundering(AML)’.
Bithumb re-appointed former CEO Heo Baek-young as the representative. The intention is to focus more on AML by bringing back the representatives who were in charge of AML and KYC at Bithumb as representatives.
Upbit is developing its own AML enhancement solution. “We are developing AML solution on our own and we expect it to be completed in the first half,” Said the official of Dunamu. He added that strengthening AML is the biggest issue for exchanges now
CoinOne and Cobit have limited deposit and withdrawal time due to the strengthening of AML. They say it is inevitable to limit the time to deposit and withdraw despite the investors’ complaints . An official from CoinOne said, “Voice phishing, etc. were completely eradicated with restrictions on this time limit. We will continue to work to strengthen AML in the future”
For small and medium-sized exchanges such as Hanbit Co, Huobi Korea and Binance KR, AML is an essential task to survive and expand their market share. In the situation where Upbeat and Bithumb are in control of the market, it is believed to urgent to have a pre-declaration requirement for them because Special Act is recognized as an “opportunity” to close the gap.
Hanbit Co voluntarily strengthened the role of the compliance team and embarked on strengthening AML. Hanbit Co official said “There is no choice but to prepare thoroughly in order for the small and medium-sized exchanges to survive after Special Act,” also he said, “We will do what we can before a concrete enforcement order comes out.“
Huobi Korea has started to strengthen AML with the support of its parent company. After strengthening withdrawal restrictions, screening of original deposits, freezing deposit funds and related measures are prepared with the help of Huobi Global. Huobi Korea official said, “Huobi Global is continuously seeking consultations on ALM. We will continue to talk to the head office for its concern of FTAF across the nations beyond Special Act.”
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