The exchange plans to verify users’ names and resident registration
details to ensure crypto transactions were “not used for illegal
activities such as money laundering.”
South Korean crypto exchange Coinone has announced it plans to no
longer allow withdrawals of tokens to unverified external wallets
starting in January.
In a Wednesday announcement, Coinone said
users would have from Dec. 30 to Jan. 23 to register their external
wallets at the exchange, after which time it would restrict withdrawals.
The exchange specified that crypto users could only register their own
wallets, and the verification process “may take some time” and could
change in the future.
According to Coinone, it planned
to verify users’ names and resident registration numbers — issued to
all residents of South Korea — to ensure crypto transactions were “not
used for illegal activities such as money laundering.” Customers at the
exchange likely won’t be able to withdraw funds to wallets without Know
Your Customer, or KYC, safeguards. This restriction also applies to the
popular hardware wallet Ledger.
In March, the South Korean government implemented a previously passed bill
that requires local crypto exchanges to meet requirements for a
real-name account and ISMS authentication, as well as report on their
operations within six months. Crypto users in the country will also see
the implementation of a tax rule
scheduled to go into effect in January — the rule would impose capital
gains taxes on all crypto trading profits of more than roughly $2,300.
Many exchanges, including Bithumb, have since announced restrictions and stronger KYC and
Anti-Money Laundering, or AML, checks in response to Korean lawmakers’
push to regulate crypto. However, Coinone will likely still accept
wallets offered by exchanges already in compliance with KYC checks,
which would include those from FTX and Binance.
source link : https://cointelegraph.com/news/coinone-will-stop-withdrawals-to-unverified-external-wallets
