South Korean cryptocurrency platforms Korbit, Upbit, Bithumb and Coinone are faced with tightening the requirements of banks due to the recently introduced FATF rules.
The Financial Action Task Force on Money Laundering (FATF) recently introduced the new AML rules, which resulted in four major South Korean cryptocurrency exchanges having some difficulties with extending their bank accounts. Banks demanded that cryptocurrency sites first implement more robust anti-money laundering mechanisms.
The new FATF rules significantly increased the responsibility of banks for money laundering and, if earlier local banks without any objections extended the accounts every 6 months, now they have begun to control that cryptocurrency sites comply with FATF requirements.
“Most likely, the new FATF rules will force smaller sites to leave the market or at least change jurisdiction,” said a representative of one of the major local stock exchanges on condition of anonymity.
Recall that the bank ShinHan said
about tightening control over the accounts of cryptocurrency exchanges at the beginning of this month.