Crypto Exchange Bithumb To Open Anti-Money Laundering Center In South Korea

Announcements, News | June 25, 2019 By:

Cryptocurrency exchange Bithumb is planning to open a money laundering prevention center in South Korea.

Local news outlet Korea JoongAng Daily reported that the center, which is planned to be established in July, will have a team made of 30 cybersecurity experts, including some working groups. To further raise its accountability, the team will repotedly be independent.

The planned money laundering prevention center will strictly implement the Know Your Customer (KYC) procedure and enhance suspicious transaction reports (STR) and fraud detection systems (FDS). It will aslo tackle any fraud-related problems and mediating conflicts.

“As a leading cryptocurrency exchange, we have decided to open up a money laundering prevention center to not only set a standard for the industry but also to preemptively act on strengthening the money laundering prevention trend around the world,” said a Bithumb official. “We plan to work on creating a transparent and sound exchange environment.”

According to Bithumb, the center would be an unpgrade to its existing fraud prevention efforts. It will leverage big data to detect potential money laundering plans. Authorities would be able to check the customers’ Bithumb exchange accounts connected to banks under real names to see if they are complying with the cryptocurrency guideline on preventing money laundering.

Earlier this year, Bithumb partnered with South Korean crypto exchanges Coinone, Korbit, and Upbit to establish a “hotline” to fight potential money laundering and protect the interests of users in the country. The hotline enable the four companies to share real-time wallet information on suspicious or unusual trading activities that are suspected to involve criminal acts, such as voice phishing and pyramid schemes.