Bithumb Integrates Chainalysis Tools

According to the official announcement on March 10, South Korean exchange Bithumb has entered into a partnership with the firmChainalysis in order to comply with local regulatory requirements.

The exchange will use the Reactor tool developed by Chainalysis in order to track suspicious activity on its platform.

According to the resolution of the country's regulator, exchanges have until 2021 to begin to comply with the international requirements of the FATF. 

Korean exchanges should now providetransaction information and real usernames in the country's financial intelligence unit. The management of the platform, who did not submit such information, can receive from $ 42,000 fine to 5 years in prison.

In addition, exchange systems must passcertification from the Korean Internet Security Agency (KISA). Due to the high time and cost involved in certification, only four exchangers completed the process – Bithumb, Upbit, Coinwon and Korbit. 

Chainalysis CEO Jason Bonds said:

As cryptocurrencies grow in popularity in Korea, new regulatory rules will appear. Exchanges will need to use our tools to match them.

Recall that at the end of last year, the Bitfinex exchange also integrated the Chainalysis solution to identify and prevent suspicious transactions.

Based on materialscointelegraph.com