South Korean crypto exchanges to follow Coinone in ban on unverified wallets

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On December 29, Coinone, a South Korea-based crypto exchange, announced its intention to ban all unverified third-party wallet addresses. According to several reports, this is to comply with government and FATF guidelines. According to reports, the rest of the more than 20 South Korea-based crypto exchanges are due to take a similar course by March 25, 2022. South Korea’s interest in crypto is slowly leading to an increase of one frame appropriate legal.

Coinone to ban unverified third-party addresses

On Monday the 29th, Coinone announced its intention to start verifying the addresses of third-party crypto wallets. According to them, they intend to comply with government directives and FATF guidelines to combat money laundering.

Coinone announced that the process will start as early as December 30 and run until January 23. Immediately on the 24th, the Coinone exchange will not accept any transactions related to unverified crypto wallet addresses. They are banning all unverified addresses by January 23.

According to several sources, this new rule will affect holders of online and hardware wallets like Ledger. Anyone who doesn’t want to check their wallet can simply withdraw their funds now.

Coinone is just the first of many crypto exchanges that will do the same in the coming months. According to multiple sources, more than 20 other crypto exchanges, including Korbit, Bithumb, and Upbit, are expected to take a similar course soon.

All exchanges will adhere to government guidelines

South Korean stock exchanges should ban unverified stock exchanges according to government guidelines and guidelines. According to several publications, the government has set March 25, 2022 as the deadline for verifying portfolios. After the deadline, no unverified wallet will deposit or withdraw funds.

Jun Hyuk Ahn, a Korean Blockchain Analyst said:

“All Korean exchanges are going to have to use a travel rules system by March because that’s when the government set a deadline for them. Coinone just did it first.

The government directive required local crypto exchanges to obtain real names, accounts, and ISMS verification systems for all crypto wallets. ISMS verification has been a requirement since September 2021 in Korea.

These regulations are designed to tackle the problem of money laundering in the country. Previously, the government had tracked around 33 people who carried out illegal transactions worth more than $ 1.48 billion.

If the exchanges do not comply with the directive, they will be banned from the country. Therefore, it is highly likely that all exchanges will do the same in the coming weeks.

Crypto regulations in South Korea

Since early 2018, the Korean government has been trying to find ways to regulate crypto. However, since the start of 2020, they have been successful in crafting policies that give space to the existence of crypto.

For example, the government started working with banks to monitor all crypto transactions. The recent decision to ban unverified transactions will go a long way in curbing money laundering.

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