Four top crypto exchanges based in South Korea have partnered together with the common goal of combating money laundering and other schemes that may harm users in the country.
The move comes after a month since CoinDesk organized a forum with lawmakers on anti-money laundry (AML) and know-your-customer (KYC) initiatives in the country. At the time seven cryptocurrency exchanges participated in signing an agreement that would ensure user protection.
The top crypto exchanges include Bithumb,
The goal is to identify any trades that contain suspicious links like predatory lending, phishing, pyramid schemes, and any other illegal activities. According to the exchanges the information will be shared through the hotline.
The exchanges also added that they would operate a shared database of all suspicious wallet addresses.
For example, this would help them to identify and stop scammers that may be looking to use different crypto exchanges to move large quantities of crypto to the same wallet maybe. The exchanges also plan to encourage other cryptocurrency platforms to join the movement.
In November of last year, the Korean Bar Association the governing body of South Korean lawyers asked the government to move quickly in developing blockchain laws which would help protect investors and also improve the tech industry.
Kim Hyun, the president of the association, urged the government of South Korea to break away from the negative perceptions and hesitations to draw up bills that would help develop the crypto and blockchain industry which would help avoid the side effects of getting involved with cryptocurrencies.
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