VerifyVASP and CODE will link the crypto exchanges of South Korea to bring more clarity in the transactions against illegal crypto transactions.
South Korea is a crypto and blockchain-friendly country in the world. To protect the citizens against any kind of manipulation or illegal use of crypto assets, South Korean government agencies imposed many strict rules on all crypto-related companies and services.
VerifyVASP and CODE are two Financial Action Task Force (FATF) travel rule compliance service providers in South Korea. On Friday of last week, both these two FATF travel rule providers signed a memorandum of understanding and ensured that they will link their services to the crypto exchanges.
The FAFT travel rule is a regulation system, which prohibits the illegal transactions of funds in crypto-related blockchain transactions. Under this rule, travel rule service provider will monitor the transactions and they will report to the government agencies if in any case, they found any suspicious activities like the association of illegal or terrorist funding or any kind of money laundering. However this rule is not in effect fully in the country but before the full introduction of this rule, all the legalized cryptocurrency exchanges are required to follow the rules.
VerifyVASP is a Singapore-based B2B service provider that is established specifically to assist virtual asset service providers like crypto exchanges. It was founded by Upbit operator Dunamu.
Bithumb, Coinone, and Korbit recently tested successfully to operate the travel rule compliance work with crypto exchanges with CODE.
Under the full integration of the FAFT travel rule and Crypto exchange, all the users will facilitate significant monitoring of above the worth of $1,000 crypto assets. This travel rule will come into existence officially on 25 March, which means it is very near to start but surely it will take time to cover all the crypto services to bring the best monitoring abilities for the government agency.
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