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[News] Upbit Implements Anti-money Laundering System to Meet New Regulatory Guidelines


[Seoul, South Korea – July 15, 2020] Upbit, one of the world’s leading digital asset exchanges, today announced it has implemented an enhanced anti-money laundering (AML) policy and system to meet new regulatory guidelines. The new system is comprised of AML compliance solutions tailored to digital asset exchanges, including tools for know-your-customer (KYC) procedures, risk assessment, and suspicious transaction reporting.

In order to meet AML standards required by local digital asset legislation and the Financial Action Task Force (FATF)’s recommendations, Upbit began developing the system early this year following an extensive consultation process.

Upbit’s new AML solution is modeled after those implemented by major financial institutions in South Korea. Key enhancements include a new KYC process which now combines watchlist filtering and customer risk assessment/management into a single, streamlined system.

Additionally, the solution includes a suspicious transaction reporting system which will allow Upbit analysts to better identify relevant transactions and submit suspicious transactions reports (STRs) to the Korea Financial Intelligence. The system also accounts for qualities unique to digital asset transactions by utilizing outside blockchain analysis tools.

By processing all ALM-related tasks, including the monitoring of employee trading, the solution also allows Upbit to be more diligent and effective regarding internal control matters.

Dunamu and Upbit plan to modify the AML solution as required once the details of the local legislation are finalized.

Developing a comprehensive internal AML solution is the next phase in Upbit’s commitment to fostering a transparent trading environment for digital asset investors. As part of this effort, Upbit partnered with global blockchain and digital asset analysis firms Chainalysis and Crystal Blockchain and adopted Dow Jones’ watchlist services to identify high risk individuals. Upbit was also the first digital exchange in South Korea to delist privacy coins.

“Developing a high-level AML system is an important step in being compliant with new regulations and creating a more trustworthy trading environment for Upbit investors. We expect the new system will be instrumental in preventing digital asset-related crimes and protecting our investors’ assets," said a spokesperson for Dunamu.