Regulation of cryptocurrency as a financial instrument is coming
The Asian-Pacific region (APAC) will have new blockchain analysis support services due to a partnership extension between two companies in an expansion effort in the region. It was announced today by Chainalysis that it will be extending its cooperation with the South Korean cryptocurrency exchange Upbit. Based on the shared information, Upbit APAC will use Chainalysis’s resources to provide a safe trading environment, as well as regulatory compliance.
This new partnership is possible thanks to the Chainalysis’s KYT (Know-Your-Transaction) system, which enhances safety and quick adaptation to the established procedures in the different countries in the region. The software offers an anti-money laundering product servicing over 275 clients across 40 countries, and the system monitors transactions in real-time while working to detect any pattern of crime-related suspicious activity. Since Upbit’s Korea’s operations are overseen by South Korea regulations, the crypto exchange has the goal to become even more compliant with regulations.
Besides South Korea, this new partnership also intends to position itself ahead of all the regulatory frameworks of other countries in the region, such as Thailand, Indonesia and Singapore. “As digital asset and cryptocurrency use in Asia Pacific continues to grow, incorporating proper AML and KYC requirements is a vital step for all cryptocurrency exchanges in the region,” said Jason Bonds, chief revenue officer at Chainalysis.
Alex Kim, CEO of Upbit APAC, praised the partnership’s extension to comply with the Financial Action Task Force’s (FATF) guidelines. “As more and more markets around the world adopt new regulations, it was vital for us to find a compliance partner that could work with us as we expand our digital asset business to new markets,” said Kim.