South Korean cryptocurrency exchanges Coin One, Upbit, Cobit and Bitsum have teamed together to combat money laundering.
The companies are working on AML services which will see the establishment of a hotline between users of the four exchanges.
In doing this, they hope to lower damages by sharing the addresses of suspected of confirmed wallets used in financial crimes in real-time. Wallets used for telecom financial, loan fraud, and multi-level crime will be made clear to other participants on the exchanges.
In the future, the companies are hoping to increase the number of exchanges taking part in this work.
Last year, the South Korean financial regulator softened its stance on cryptocurrency trading, after previous comments regarding a potential ban. The regulator is looking to support normal cryptocurrency transactions and is trying to encourage banks to work alongside crypto exchanges.
There has been a lot of work conducted by regulators around the world in regard to cryptocurrency. Most recently, the FCA revealed it is consulting on guidance which will help to outline what cryptoasset activities it is regulating.
Earlier in the year, the European Securities and Markets Authority gave advice to the European Union Institutions on initial coin offerings. This advice, which was presented to the EU Commission, Council and Parliament, clarifies the existing EU rules which are pertinent to crypto-assets which qualify as financial instruments. In addition to this, it also commented on gaps in regulations.
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