South Korean digital currencies exchange Bithumb has enlisted the help of blockchain analysis company Chainalysis to investigate suspicious activity. The exchange aims at establishing a secure and robust platform for its users, while also complying with new guidelines established recently for the digital currencies industry. Bithumb joins over 150 other companies globally that use Chainalysis’ tools to scrutinize transactions on their platforms.
Bithumb has integrated the Chainalysis Reactor investigations tool, the New York-based company revealed in a press release. The tool allows its users to connect digital currency transactions to real-world entities. In doing so, the users can combat criminal activity including money laundering, terrorism financing, fraud, extortion and more. Reactor is used by several law enforcement agencies globally to investigate crimes linked to digital currencies.
The exchange is reacting to new laws enacted by the South Korean government giving it greater oversight over the digital currencies space. Earlier this month, the country’s national assembly voted to amend the Financial Information Act. And while the amendment gave more legitimacy to the industry, it also requires the exchanges to step up their game, especially in regards to their anti-money laundering and counter-terrorism financing programs.
Bithumb intends on staying ahead of its peers and being fully compliant by integrating the Reactor investigation tool, the exchange’s head of compliance SungMi Lee stated. He anticipates that the government will issue more updates to the improved rules, making it even more pertinent to ensure their AML and CFT programs are world-class.
Chainalysis will continue to assist its clients to combat crime, the company’s chief of revenue Jason Bonds said.
“Chainalysis is committed to helping our customers investigate all kinds of illicit activity, including hacks and scams, and establish long-term regulatory compliance. As cryptocurrency use in South Korea continues to grow, new regulations such as this will make blockchain analysis solutions like Chainalysis vital for compliance. “
Complying with the new regulations will be vital for the survival of any exchange in South Korea. The amendments require the exchanges to partner with a single bank for deposits and withdrawals, making it easy to link transactions to users and track the movement of funds. The Korea Internet Security Agency (KISA) will also have to certify an exchange’s systems before it’s licensed to operate. Bithumb has already completed the requirements, proving its dedication to complying with market regulations.
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