Four major crypto exchanges in South Korea have reportedly joined their forces with the purpose to combat potential money laundering and schemes which might harm the users.

The four crypto exchanges

According to one news outlet from South Korea Bithumb, Coinone, Korbit, as well as Upbit, jointly announced on Friday about the establishment of the hotline on which the users can share real-time wallet information on any unusual or suspicious trading or payments.

Their purpose is to identify trades with suspected links to phishing, predatory lending, as well as pyramid schemes or some other illegal activities and even share related information via the hotline, according to the exchange.

According to one anonymous representative of one of the operators, the exchange is also going to operate a shared database of questionable wallet addresses which would, for instance, have the ability to help them identify and halt scammers that look to use different exchanges in order to move a large amount of crypto to the same wallet.

He also said that the exchanges are thereby going to have the ability to check any suspicious transactions instantly, and after that immediately block the related accounts.

Encouraging other crypto exchanges to join the initiative

Earlier in January, it was reported that seven of 21 local crypto exchanges got the approval from the South Korean government after a security audit.

During the audit, which took place between September and December of last year, Bithumb, Coinone, as well as Korbit along with four other major crypto exchanges satisfied investigators of the strength of their security measures. But, most of the firms inspected were found to be exposed to attacks.

The four firms also have some plans to encourage other cryptocurrency exchanges to join the initiative.

Back in November 2018, the Korean Bar Association, which is the body which governs the South Korean lawyers, invited on the government to hasten the initiation of blockchain regulations, as well as prevent side effect involving cryptocurrencies.

Also, last June, the financial regulator of South Korea amended the anti-money laundering rules which apply to crypto exchanges around the country, requiring domestic banks actually to tighten up monitoring of related bank accounts.

Accusations about Bithumb and Upbit

Bithumb, which is now the second-largest exchanges in the world by reported volume, has recently been accused of faking its trade volumes since summer 2018, following a $30 million hacked in June. According to cryptocurrency ratings, as well as analytics service CER, the exchange utilized wash trading, and also demonstrated strange activity spikes, which was probably a sign of trading manipulations. But, Bithumb denied all the allegations.

Upbit has also been accused of falsely inflating its volume figures on three occasions between October 2017, and December 2018. Despite the ongoing legal investigation, the exchange has also denied all accusations.

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