Chainalysis, the blockchain analysis company, today announced the successful deployment of its investigations solution, Chainalysis Reactor, with Bithumb, a leading South Korean cryptocurrency exchange. Bithumb will use Chainalysis Reactor to investigate suspicious activity and establish a more secure, robust platform for its users following the South Korean National Assembly’s vote last week in favor of amending the Special Financial Transactions Information Act, effectively creating a framework for the country’s cryptocurrency industry.
“Chainalysis is committed to helping our customers investigate all kinds of illicit activity, including hacks and scams, and establish long-term regulatory compliance,” said Jason Bonds, Chief Revenue Officer, Chainalysis. “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.” Payments
“By partnering with Chainalysis, we felt confident that we were choosing the industry-leading investigation software and professional guidance,” said SungMi Lee, Head of Compliance, Bithumb. “We anticipate further updates following last week’s vote making it even more important for us to have support available in our local language.”
Last August under the Financial Services Commission (FSC), the Financial Intelligence Unit (FIU) in the Republic of South Korea disclosed a plan to directly regulate cryptocurrency exchanges. Now that this has been passed by the National Assembly, the government will enhance cryptocurrency transaction transparency through a “cryptocurrency exchange licensing system,” as recommended by FATF.
Given the increasing number of hacks that cryptocurrency exchanges suffered in the past year, The Republic of South Korea is particularly inclined to pass measures that improve transparency. As a result, exchanges such as Bithumb are strengthening their anti-money laundering (AML) and combatting the financing of terrorism (CFT) practices ahead of these new regulations.
Chainalysis Reactor is the investigation software that connects cryptocurrency transactions to real-world entities, enabling cryptocurrency businesses and law enforcement to combat criminal activity such as fraud, extortion, and money laundering on the blockchain.