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HomeLaw & PoliticsFATF travel regulation to be imposed on South Korean crypto firms

FATF travel regulation to be imposed on South Korean crypto firms

With the new travel regulation in effect, South Korean governmental observers have made their opinion rather plain. As the regulatory environment in Korea altered, crypto firms needed to cooperate proactively with regulators to prevent forced closures. The recent step makes the Korean crypto ecosystem more transparent. Several regulatory exchanges formed a partnership to create solutions for compliance with the Financial Action Task Force’s crypto travel rule. The travel rule establishes a global standard for virtual asset service providers to prevent money laundering and terrorism funding.

In August of last year, South Korean companies Bithumb, CoinOne, and Korbit created CODE, an acronym for Connect Digital Exchanges. Surprisingly, about 30 South Korean cryptocurrency and blockchain businesses formally collaborated with CODE on February 25. This travel guideline required the disclosure of customer information for transactions over a US$1,000 threshold. It employs blockchain to record transactions and customer data on nodes controlled by member businesses in a distributed server.

Bithumb’s Head of Business Cooperation, Shin-geun Cho, stated, “We intend to aggressively engage with a lot of domestic and overseas firms through coding solutions with high connection and scalability utilising blockchain.” According to Wu, blockchain, a well-known news outlet, the travel rule would apply to all transactions worth more than a million Korean won (USD 831.12).

 

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