Wednesday, November 13, 2019
Blockchain Industry Makes All-out Efforts to Prevent Money Laundering
To Comply with FATF Recommendations
Blockchain Industry Makes All-out Efforts to Prevent Money Laundering
  • By Yoon Young-sil
  • November 1, 2019, 14:29
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Korea’s cryptocurrency industry is making all-out efforts to build an anti-money laundering (AML) system that complies with the recommendations of the Financial Action Task Force (FATA).

Korea’s cryptocurrency industry is making all-out efforts to build an anti-money laundering (AML) system to comply with the recommendations of the Financial Action Task Force (FATA) that go into effect in June 2020.

The inter-governmental watchdog asks cryptocurrency exchanges and virtual asset service providers to come up with an AML system of a level that is required of established financial institutions.

Local blockchain and cryptocurrency companies are moving to install a FATA-recommended AML system in advance and use it as a marketing point.

Korea’s blockchain projects and cryptocurrency exchanges are coming up with measures aimed at preventing cryptocurrency frauds and hacking.

GDAC, a cryptocurrency exchange operated by Peertec, a blockchain-based fintech company, has recently formed a partnership with a professional security services company Penta Security to reinforce security of its blockchain infrastructure. It aims to prevent illegal money from entering the cryptocurrency exchange and protect users’ assets from hackers.

Paycoin, a blockchain project operated by e-payment company Danal, has also introduced Crypto AML, an AML solution, to its own cryptocurrency wallet app. Crypto AML is a solution that combines OCTA Solution’s AML solution for existing financial institutions with Uppsala Security’s technology for cryptocurrency. With the help of Crypto AML, Paycoin plans to track down on transactions which are suspected of money laundering and make cryptocurrency transactions more reliable.

Sooho, a professional blockchain-based security audit company, is developing its own AML solution called “Heimdall” in line with the new FATF guidance. Heimdall allows cryptocurrency operators to obtain lists of data that are needed for Know Your Customer (KYC) procedures. Moreover, the solution also allows them to find out whether their clients comply with KYC procedures, blocking risky transections or money laundering attempts. “We have completed the proof of concept (POC) procedure for Heimdall with SK C&C in Singapore. Now we are expanding our business,” said a Sooho official.