Bithumb, South Korean Cryptocurrency exchange, has declared a partnership with blockchain analysis firm Chainanylsis.
The exchange has announced joining Chainalysis to use its Reactor software, which will examine unusual activity on its platform to comply with South Korea’s recent Financial Transactions Information Usage Act.
South Korea’s Crypto Crackdown
South Korea has recently announced a change in its domestic cryptocurrency regulations. The latest regulations have complied with reporting standards set by the FATF (Financial Action Task Force).
South Korea based cryptocurrency exchanges are struggling to comply with new guidelines proposed by Korean regulatory. The exchanges are required to comply with the latest rules enlisted under South Korea’s recent Financial Transactions Information Usage Act by 2021.
In essence, it will take a year to have legal force and effect of specific provisions of the law, and it is expected that the new law will fully take effect in another six months.
Therefore, all South Korea based crypto-exchanges should operate in full compliance with the law by September 2021.
The Exchanges based in South Korea must be required to get their systems certified by the Korea Internet Security Agency (KISA), and exchanges need to report their operations to the country’s financial intelligence unit.
Chainalysis Launched chainalysis’s Reactor
The blockchain analysis firm Chainalysis later today announced Chainalysis Reactor, victorious implement of its investigations solution.
The Chief Revenue Officer of Chainalysis, Jason Bonds, said that the Chainalysis devoted to helping their clients investigate all sorts of illegal activity, including hacks and scams, and build long-term regulatory compliance. He further added that the use of cryptocurrency is growing continuously. The new regulations imposed by Korea will open doors of opportunity for blockchain analysis solutions like Chainalysis.
He also added that they have a presence in the South Korean market for three years and continue to prosper with their groundbreaking tech and support for customers.