South Korean crypto exchange Coinone has partnered with two companies – CertiK and Xangle – to bolster its security and transparency.
According to Wednesday’s announcement, CertiK will provide public disclosure for the exchange, including audit information, verification of technology, and project information security. Xangle, on the other hand, will be responsible for ensuring investor protection and project transparency.
Founded in 2017 and backed by Binance Labs and Consensus Labs, CertiK specializes in the verification of blockchains and smart contracts. It also launched a native blockchain last month.
Seoul-based Xangle provides digital currency disclosure services and summarises structure and fundamentals of a token like formal name, registered address, and even pricing.
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Coinone is the third-largest crypto exchange in South Korea and, according to Coinmarketcap.com, handled more than $65 million worth of crypto trades in the last 24 hours.
Regulatory crackdown on crypto exchanges
This move by the exchange comes at a time when global regulators are strictly scrutinizing crypto exchanges for any lapse in security and transparency. South Korean local watchdogs are also raising concerns over the issues of money laundering through digital currencies and are working on tighter KYC guidelines and processes.
Finance Magnates recently reported that the South Korean market watchdog, the Financial Services Commission (FSC), is planning to directly regulate the crypto exchanges operating in the country. The agency is certain that it can prevent money laundering with cryptocurrencies if the exchanges come directly under its purview.
Over the past years, many South Korean crypto exchanges became targets of hackers and lost millions of dollars. Bithumb, the largest exchange in the country, was hacked two times in a single year and lost $50 million in the process. Last year, multiple South Korean crypto exchanges along with Coinone were raided by the country’s tax authorities amid the abrupt bankruptcy of YouBit.