Tuesday, June 25, 2019
Private Sector Works on Realizing Transparent Cryptocurrency Trade Instead of Government
Initiative by Private Sector
Private Sector Works on Realizing Transparent Cryptocurrency Trade Instead of Government
  • By Jung Suk-yee
  • May 1, 2018, 14:16
Share articles

Virtual currency exchange Upbit will introduce the World-Check solution to prevent money laundering.
Virtual currency exchange Upbit will introduce the World-Check solution to prevent money laundering.

It is noteworthy that as the government has showed a lukewarm attitude about virtual money-related policies, the cryptocurrency industry itself sets standards for safe virtual currency trading and fraud-free initial coin offerings (ICOs).

According to the cryptocurrency industry on April 30, various safety devices are being prepared to allow users to trade cryptocurrencies at virtual currency exchanges without worrying about falling victim to accidents and frauds. Dunamu operating Upbit have their own various safety devices, one of which is the Multi-Level Coin Report System that provides a one million won award to the first person that reports a multi-level coin. The exchange is directly operating the report system to eradicate multi-level coins, as there are pseudo-deposit business operators that gather investors via multi-level marketing by exploiting virtual currencies.

Dunamu recently launched the 'World-Check' service in collaboration with global knowledge and information consulting firm Thomson Reuters. This is a service to prevent money laundering based on virtual money. World-Check is a crisis management data base system that identifies and informs of individuals and companies that are being monitored for financial crimes and unfair acquisition risks.

The Korea Blockchain Association, a group of virtual currency exchanges, announced its own regulations on exchanges. According to the regulations, a cryptocurrency exchange must set procedures for the verification of user identities to prevent money laundering activities in virtual money trade and keep the transaction histories of users for five years. In addition, an exchange listing a new virtual currency must have an internal evaluation system such as a listing procedure committee. A cryptocurrency exchange ought to make public a white paper containing the basic information of a virtual currency, and its price at a foreign exchange.

SK Telecom also came up with the 'Token Exchange Hub' business model that supports ICO companies in all directions. When start-ups or SMEs issue virtual currencies through ICOs, the business model provides systemic administrative support and advice, helping them to trade virtual currencies safely and transparently. In particular, SK Telecom paid attention to the fact that there is concern that investors may suffer from ICOs. There are too many unverified ICOs and there are many cases where business does not proceed well after ICOs. SK Telecom's Token Exchange Hub is expected to play a role as a verification service, too.