Due to its decentralised and semi-anonymous nature, a number of regulators have had a blind eye towards cryptocurrencies as this makes money laundering a lot easier. Four major cryptocurrencies in South Korea have joined hands in order to get rid of such evil permanently. Recent reports published in the South Korean media state that leading South Korean crypto exchanges (Coinone, Upbit, Corbit and Bithumb) have collectively set up a hotline essentially for sharing information on a real-time basis concerning any suspicious and unusual transactions which indicate to be linked with any criminal act like pyramid and phishing schemes.
Concerning the same, one of the official operators stated that ‘They are now able to instantly check any wrongful transactions made at other exchanges and take necessary measures, such as blocking their own related accounts, “The cooperative step against money laundering via cryptocurrencies is expected to boost the soundness of the industry and to protect consumers better.’
Almost all the major countries of the world such as the USA, Russia and Canada stand on the same page when it comes to curbing money laundering. In the previous year, most government regulators along with financial institutions asked cryptos to clean up its act if they desire to get mainstream acceptance. With so much talk of cryptocurrency and money laundering in the media, it is absurd to deny the fact that the crypto industry is in the front foot and is creating its own codes and conducts. Majority of the crypto exchanges today are following the KYC and AML regulations. However, a lot of countries such as Japan have its own regulatory bodies who are effectively monitoring illegal activities.
Although money laundering continues to be one of the evils for cryptocurrency industry, initiatives such as real-time hotline set up by South Korean Exchanges is definitely a step forward. Such well thought steps help people and regulators gain confidence about cryptocurrencies that this is not another tool for people to launder black money.