July 7, 2022

With the South Korean government imposing local cryptocurrency exchange companies to register with the Financial Intelligence Unit, Coinone has become the latest to have passed the high bar for official registration. Whilst leaving its rival Bithumb’s application with FIU the still pending.

Financial Intelligence Unit is the anti-money laundering unit of the country’s Financial Services Commission.

According to market insiders, the delay on Bithumb’s registration application is suggested to do something with a scandal involving Lee Jung-hoon, the company’s largest shareholder. Lee is currently on trial over accusations for fraudulently obtaining around 160 billion won ($135 million) from BK group, a plastic surgery hospital.

The company mentioned that it plans to comply with any requests from the FIU by submitting additional paperwork if needed in order to accelerate the registration process.

On the other hand, Coinone has mentioned that it will take the next step to comply with the regulations as mandated by law.

According to a Coinone official, they will begin with the KYC (Know Your Customer) process to identify its customers and further strengthen anti-money laundering measures by implementing a ‘travel rule’ system through CODE.

CODE is designed to enable virtual-asset service providers to identify their users and share information with each other. It is a joint venture launched by Bithumb, Coinone and Korbit.

According to industry reports, both the companies until Friday had been waiting for approval for more than two months.

Currently, out of 42 crypto exchanges that applied for business registration in the country, only three have given the green light. While evaluations of the other 39 are still pending.

Earlier the anti-money laundering unit had announced that it would notify the cryptocurrency exchanges whether they can legitimately operate in the country by the end of this year.

The global cryptocurrency market on November 13, Saturday however fell back to the red zone. The world’s two largest cryptocurrencies, both Bitcoin and Ether recorded their lifetime highs in the recent few days.

In the past week, Bitcoin had crossed an all-time high of $67,000, while Ethereum or Ether, the breached past the $4,800 mark during the same time period.