Korean Banks embarks on Anti-Money laundering regulation on Cryptocurrency platforms

Korean Banks embarks on Anti-Money laundering regulation on Cryptocurrency platforms
Chinese cryptocurrency platform ‘Huobi Korea’ holding conference meeting on August, 2018

Korean banks are now under the regulation of the Financial Action Task Force(FATF). Subsequently, they suggested the high-intensity guideline for anti-money laundering(AML) against Chinese cryptocurrency platforms that uses ‘Bee Hive Accounts’ (Investment deposit directly to Corporate account). This alarms the Korean cryptocurrency industry as well.

Prior to this, FATF has officially announced a regulation guideline on cryptocurrency last month. According to this regulation, all of its members must switch all the cryptocurrency platforms businesses in the member nations must have license for cryptocurrency exchange in order to operate legally. In addition, identity of the people at the both ends of transaction must be reported.

Huobi Korea, an cryptocurrency exchange platform based in China, released on July 8th that the withdrawal limit hours after the initial deposit will change from 72 hours to 120 hours which is almost 2 times longer.

It means that if any deposit to Huobi Korea’s corporate account cannot be returned for 120 hours. During these hours, the platform and banks will investigate the source of the fund and legality. In addition, some of the investors may be requested to submit financial records. If it is not submitted, or the investor is suspected to be the illegal fund, the asset may be frozen for more than 100 days.

Huobi Korea insists, “It is a self-regulatory process to meet AML standard.” However, as the family relation certificate and the resident registry certificate other than bank records may be requested to deposit more than certain amounts in Huobi Korea, the industry sees it as the result of the guideline suggested by the bank industry. Under the current legal system, the banks issuing the account must be held responsible for illegal money laundering through cryptocurrency platforms.

Another anonymous Chinese exchange platform ‘B’ has been requested to employ the standard which states the 72 hours withdrawal limit for initial deposit and investor’s submission of resident registry certificate from their bee hive account issuing bank ‘C’. Investors using Chinese platforms became more fastidious because not only the identification but also the bank records need to be submitted.

The industry expects the current AML standard on Chinese platforms to be similarly applied to Korean platforms as well. It is largely due to FATF last month announcing, “All the cryptocurrency platforms must be informed of every participants’ legal identity.”

Anonymous personnel from the cryptocurrency exchange website ‘A’ which is in partnership with the same bank as Huobi Korea is said, “Though we have not received any notice from the bank yet, the new AML standard will be applied within a year, and it will likely to be preemptively applied on Chinese platforms. It will soon be on every platform with the bee hive accounts, whether they are Korean or Chinese.”

Some say the large exchange platforms such as Bithumb and Coinone will also be affected by similar regulation as well. It may be less stronger on the Korean personal identification process(KYC), but it will still be required to prove whether the fund is involved in money laundering or not by submitting each investor’s financial records.

Another personnel from one of the large Korean exchange websites said, “We are expecting to renew contracts with banks regarding issuance of ID authenticated bank accounts. FATF’s regulation will further require obligations regarding ID authorization and anti-money laundering. And the medium, small-sized platforms that cannot satisfy these standards will be practically regarded illegal in the market.”

Lee Suho(2019.07.08.) 은행권, 암호화폐 거래사이트 자금세탁방지 규제 ‘시동’
News 1. Retrieved from  http://news1.kr/articles/?3665001


  1. You could definitely see your expertise in the paintings you write. The arena hopes for more passionate writers like you who are not afraid to say how they believe. Always follow your heart. “A simple fact that is hard to learn is that the time to save money is when you have some.”

  2. Thanks , I’ve recently been searching for information approximately this topic for
    a while and yours is the best I’ve came upon so far. However, what in regards
    to the conclusion? Are you sure about the supply?

  3. This is the perfect webpage for everyone who would like to
    understand this topic. You know a whole lot its almost hard to argue with you (not that I really would want to…HaHa).
    You certainly put a fresh spin on a subject which has been written about for decades.
    Excellent stuff, just wonderful!

  4. I’ve been exploring for a bit for any high-quality articles or blog posts in this
    sort of area . Exploring in Yahoo I ultimately stumbled upon this site.
    Studying this information So i’m happy to convey that I’ve a very excellent
    uncanny feeling I found out exactly what I needed.
    I most undoubtedly will make certain to don?t fail
    to remember this website and give it a look on a continuing basis.

  5. Definitely consider that which you stated. Your favourite justification appeared
    to be on the net the easiest factor to take into accout of.
    I say to you, I definitely get irked while people think about worries that
    they just do not recognize about. You controlled to
    hit the nail upon the top as smartly as outlined
    out the entire thing without having side-effects
    , folks could take a signal. Will probably be again to get
    more. Thank you

  6. Thanks on your marvelous posting! I really enjoyed reading it,
    you could be a great author.I will always bookmark your blog and will eventually come back sometime soon. I want to encourage
    that you continue your great job, have a nice weekend!

  7. Hello there, I found your web site via Google at
    the same time as looking for a similar topic, your web site got here up, it appears to
    be like good. I have bookmarked it in my google bookmarks.

    Hi there, just become aware of your blog via Google, and found that it is
    truly informative. I’m gonna be careful for brussels.
    I will be grateful if you proceed this in future.
    Many people might be benefited out of your writing.


  8. Generally I don’t read post on blogs, however I would like
    to say that this write-up very forced me to take
    a look at and do so! Your writing style has been amazed me.
    Thanks, quite nice post.

  9. You really make it seem so easy with your presentation but
    I find this topic to be really something which I think I would never understand.

    It seems too complex and extremely broad for me.
    I am looking forward for your next post, I will try to
    get the hang of it!

  10. The very next time I read a blog, I hope that it does not disappoint me just as much as this one. I mean, Yes, it was my choice to read through, but I genuinely believed you would have something interesting to say. All I hear is a bunch of crying about something that you could fix if you were not too busy seeking attention.

  11. I’ve been exploring for a little for any high-quality articles or weblog posts in this sort of area .

    Exploring in Yahoo I at last stumbled upon this web site.
    Studying this info So i am satisfied to express that I’ve a very
    just right uncanny feeling I came upon just what I
    needed. I so much surely will make sure to do not put out of your mind this
    site and provides it a glance regularly.

  12. Hi! I could have sworn I’ve visited this blog before but after going through some of the posts I realized it’s new to me.
    Anyways, I’m definitely pleased I found it and I’ll be book-marking it and checking back regularly!

  13. Hey there! This is my first visit to your blog!

    We are a group of volunteers and starting a new initiative
    in a community in the same niche. Your blog provided us beneficial information to
    work on. You have done a extraordinary job!

  14. I simply couldn’t depart your website prior to suggesting that
    I extremely loved the usual info an individual provide in your guests?
    Is gonna be back ceaselessly to check out new posts

  15. Hey! I just wanted to ask if you ever have any issues with
    hackers? My last blog (wordpress) was hacked and I ended up losing a few months of hard work due to no backup.

    Do you have any solutions to protect against hackers?

  16. I do not even understand how I stopped up here, but I assumed this publish was once great.
    I don’t realize who you are however definitely you’re going to a well-known blogger in the event you aren’t already.

  17. Hi, I do believe this is an excellent website.
    I stumbledupon it 😉 I may come back yet again since
    i have book marked it. Money and freedom is the best way
    to change, may you be rich and continue to help other

  18. Greetings! I’ve been reading your blog for a while now and finally got the
    courage to go ahead and give you a shout out from Austin Texas!
    Just wanted to say keep up the good job!

  19. Hey there are using WordPress for your site platform?
    I’m new to the blog world but I’m trying to get started and set up my own. Do you need any html coding knowledge
    to make your own blog? Any help would be greatly appreciated!

  20. Hey I am so happy I found your webpage, I really found you by accident,
    while I was searching on Bing for something else,
    Anyways I am here now and would just like to say cheers
    for a tremendous post and a all round thrilling blog (I also love the theme/design), I don’t have time to browse it all at the
    moment but I have bookmarked it and also added in your RSS
    feeds, so when I have time I will be back to read a lot more, Please do keep up the superb work.

  21. Its like you read my mind! You seem to know a
    lot about this, like you wrote the book in it or something.
    I think that you can do with some pics to drive the message home a bit, but other than that, this is
    wonderful blog. A great read. I will certainly be back.

  22. I know this if off topic but I’m looking into starting my own blog and was wondering what all is needed to get setup?

    I’m assuming having a blog like yours would cost
    a pretty penny? I’m not very web smart so I’m not 100% positive.
    Any suggestions or advice would be greatly appreciated.

    Thank you


Please enter your comment!
Please enter your name here