The National Police Agency of South Korea plans to meet with the five top cryptocurrency exchanges (Upbit, Bithumb, Coinone, Korbit, and Gopax) in the region including global leading digital asset service provider Binance to discuss a system that promotes real-time wallet address monitoring and freeze funds functions. Markedly, all of these exchanges are registered in South Korea’s Financial Intelligence Unit (FIU).
Binance Re-enters South Korean Crypto Market Through Gopax
Also, this comes after Binance acquired a majority stake in Gopax to re-enter the South Korean market. However, the exchange has previously been in business with South Korean authorities before now, providing them with training and resources to combat crypto crimes.
This would mean that users of these platforms would be able to check virtual currency wallet addresses and request the freezing of funds in cases of a suspected transaction or a criminal investigation.
South Korea Intensely Oversees Crypto Activities
It is worth noting that South Korean authorities hold their responsibilities to cryptocurrency exchanges and other virtual asset-related firms in high esteem. As the second-largest crypto market, efforts are continually made to ensure that businesses are in compliance to set standards and regulations.
Last year October, FIU created a system that monitors the transactions of South Korea’s crypto whales especially those with more than 100 million won in digital assets. According to the Financial Services Commission (FSC),
“The greater the proportion of single-listed virtual assets and stablecoins in virtual asset operators, the higher the risk of money laundering.”
South Korean Authorities Exercise More Crypto Authority
Following the collapse of TerraLUNA in May and the implosion of Bahamian-headquartered crypto exchange FTX, South Korean officials proposed new changes to the Digital Assets Bill to give them more authority over crypto exchanges. Congressman Yoon Chang-Hyun considered putting more authority in the hands of the FSC and Financial Supervisory Service (FSS) in the region.
Still part of its commitment to the crypto industry in its jurisdiction, at the beginning of this year, the South Korean Ministry of Justice hinted at launching a crypto tracking system dubbed the “Virtual Currency Tracking System.” This system would be responsible for checking for transaction details like transaction history, and source of funds before and after the remittance.