According to reports published on Monday, major South Korean crypto exchanges have implemented functionality for smooth withdrawals and deposits between exchanges.
The move is a positive step for local crypto dealers, as it is made possible by new laws enacted by the Financial Action Task Force (FATF) in South Korea. It has the potential to boost local crypto commerce after the FATF travel limitations caused a drop in activity.
A month after the new rules were enacted in South Korea, Upbit, a local cryptocurrency exchange, announced that users can now withdraw cryptocurrency from platforms such as Bithumb, Korbit, and Coinone. According to reports, a technical test involving crypto service providers VerifyVASP and CODE was successfully launched.
This action has resolved a major issue for all cryptocurrency users in South Korea. Users have been unable to connect with platforms and shift digital assets among the top crypto platforms since the regulation’s implementation. Cryptocurrency holders are still unable to transfer large sums of digital assets to other e-wallets.
FATF’s role in countering illegal activities
The FATF travel regulations allow virtual digital service providers to collect information about the two people engaged in any transaction worth more than $1,000. South Korea committed to following the guidelines for all transactions worth more than 1 million Korean won ($800). These limitations eventually limit the users’ ability to conduct large transactions.
Experts, on the other hand, say that while FATF’s regulation adoption may cause some difficulty, it will undoubtedly aid in the prevention of criminal actions and the protection of crypto holders’ interests.
Read more: Upbit, South Korean Exchange, faces scrutiny by KFTC
