With the rising money laundering graph, there has been rising concern among cryptocurrency exchanges around the globe. South Korea’s biggest cryptocurrency exchange is in the news for enforcing ban on trading in 11 different countries including North Korea, Iran and Iraq. The ban is intended for anti money laundering.
Bithumb, the exchange will work to block transactions from residents that are blacklisted under Non Cooperative Countries and Territories (NCCT). The exchange is working to comply with international regulations and anti money laundering rules.
The inter-governmental Financial Action Task Force (FATF) considers the 11 NCCT countries as nations lacking adequate measures to deal with money laundering, terrorist financing and other threats to the international financial system. The 11 countries banned for trading are North Korea, Bosnia and Herzegovina, Ethiopia, Syria, Iran, Iraq, Sri Lanka, Trinidad and Tobago, Tunisia, Vanuatu and Yemen.
The Financial Action Task Force
The last G 20 financial meeting saw the participating countries deciding to implement the Financial Action Task Force on Money Laundering standards. The participating countries were determined to implement FATF rules on cryptocurrencies. A document by FATF said:
We commit to implement the FATF standards as they apply to crypto-assets, look forward to the FATF review of those standards, and call on the FATF to advance global implementation. We call on international standard-setting bodies (SSBs) to continue their monitoring of crypto-assets and their risks, according to the mandates, and assess multilateral responses as needed.
The implementation of theses rules worldwide will empower the cryptocurrency market to achieve validity and thus gaining interest of more investors. As a next step the FATF will explain regarding the implementation of theses standards by different countries.
Cryptocurrency market and crypto related activities are under great scrutiny. Implementation of regulations are intended to establish legal framework for enterprises, organizations and individuals to work.
Other countries like China or South Korea, have decided to take stricter measures on the market. China has totally banned cryptocurrency trading activities and Initial Coin Offerings. At the same time, South Korea has imposed severe rules for virtual currency exchanges and investors that want to participate in the crypto market.
In the coming time, it’s expected to see that countries like China, South Korea will be taking stringent measures in the cryptocurrency market. South Korea has implemented regulations on cryptocurrency exchanges, China too has come up imposing a ban on ICOs and trading .