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South Korea’s Financial Intelligence Unit (FIU) is extending its comprehensive anti-money laundering and compliance inspection to crypto exchange Bithumb for two more days. South Korean regulators maintained a tough stance against crypto exchanges after the Terra Classic collapse (MONC) in May. The FIU has already completed inspections and audits of Upbit, Gopax and Coinone.

Bithumb under inspection by South Korean Financial Intelligence Unit

Bithumb, South Korea’s second-largest crypto exchange, is under inspection by the Financial Services Commission’s Financial Intelligence Unit for complying with the anti-money laundering Specific Financial Information Act, reported local media on September 20. The inspection and audit of Bithumb was to be completed by September 19. However, the delay in submitting the data by Bithumb resulted in an extension of another 2 days.

Additionally, the crypto exchange Interest from FTX to acquire Bithumb require the FIU to audit the context or governance structure. In fact, Bithumb’s largest shareholder, Vident, has agreed with FTX to divest its stake in the crypto exchange. Additionally, former Bithumb chairman Lee Jung-hoon is on trial for fraud under the specific economic law. These are also some of the reasons for the extension of the inspection.

The FIU will inspect the implementation of the improvements suggested during the previous review. In addition, crypto exchanges are subject to a thorough audit of anti-money laundering compliance by companies.

Last month, the FIU completed the Upbit Inspection, Gopax and Coinone. In the event of violations of the anti-money laundering law, fines are imposed on crypto exchanges. However, the results of the inspection and audit are communicated privately to the companies.

South Korean regulators have increased oversight of crypto exchanges after the Terra Classic (LUC) crisis and increased money laundering.

Crypto Money Laundering

Money laundering, fraud and tax evasion have increased significantly in South Korea in recent years. Interestingly, regulators uncovered $3.4 billion worth of illegal crypto-related exchange transactions.

In addition, the South Korean prosecutor’s office is investigating four crypto-related cases involving over $1.1 billion in illegal foreign exchange transactions. Founder of Terra Do Kwon is also charged with money laundering through shell companies. Prosecutors issued an arrest warrant for Do Kwon and began the process to put it on the Interpol red notice.

Meanwhile, Terra Classic (LUC) price continues to dive below. It is trading near the $0.0003 level, down 6% in the last 24 hours.

Varinder is a technical writer and editor, technology enthusiast, and analytical thinker. Fascinated by disruptive technologies, he shared his knowledge on blockchain, crypto-currencies, artificial intelligence and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a substantial period of time and currently covers all the latest updates and developments in the crypto industry.

The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.

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