Bithumb, a major South Korean crypto exchange, has integrated Chainalysis’ investigations solution to ensure the legitimacy of transactions happening on its platform.
The solution called Chainalysis Reactor will analyze all transactions and investigate suspicious transactions on the exchanges.
Commenting on the development, Jason Bonds, chief revenue officer at Chainalysis, said: “Chainalysis is committed to helping our customers investigate all kinds of illicit activity, including hacks and scams, and establish long-term regulatory compliance.”
“As cryptocurrency use in South Korea continues to grow, new regulations such as this will make blockchain analysis solutions like Chainalysis vital for compliance. We have had a presence in the South Korean market for over three years and are continuing to invest to ensure we provide top-notch, on-the-ground support for our customers.”
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Clarifying laws around crypto
This came after the South Korean lawmakers recently passed Special Financial Information Law, bringing new rules for operating crypto exchanges in the country.
The law mandated maintaining certain standards of technology and compliance on the part of the trading platforms. The exchanges also need approval from the Financial Services Commission and the Korea Internet & Security Agency (KISA) to offer services to Korean nationals.
“By partnering with Chainalysis, we felt confident that we were choosing the industry-leading investigation software and professional guidance,” SungMi Lee, head of compliance at Bithumb, said. “We anticipate further updates following last week’s vote making it even more important for us to have support available in our local language.”
Being one of the most demanding markets for crypto trading, South Korea houses some of the major digital currency exchanges. The country, however, saw multiple hacks on crypto exchanges, including a $50 million hack last year on UpBit, one of the big four exchanges operating in the country.