Korean Police Collaborate With Exchanges For Virtual Asset Controls
The National Police Agency of Korea is set to convene a “Working Meeting on Virtual Asset Exchanges” with the country’s five major virtual asset exchanges and Binance today. The objective of the meeting, as reported by eDaily on the 5th, is to establish a system where not only domestic exchanges but also Binance can verify virtual asset wallet addresses and request fund freezes.
According to E-Daily, the National Police Agency (South Korea) aimed to establish a system that would allow them to request confirmation of wallet addresses and freeze funds not only from the 5 domestic exchanges, but also from global exchanges like Binance.…
— Wu Blockchain (@WuBlockchain) May 30, 2023
Korean Police and Exchanges Collaboration
Last October, the police entered into business agreements with five domestic virtual asset exchanges, including Upbit, and launched a “virtual asset exchange verification system.” Under this system, when the police seek information regarding a virtual asset wallet address under investigation, they notify the actual exchange responsible among the five major exchanges.
Expanding on this initiative, the police now aim to apply the verification system to Binance, an overseas virtual asset exchange. Additionally, the meeting will address the enhancement of the virtual asset exchange verification system and the restructuring of the police hotline, which serves as a crucial contact network.
Looking ahead, the police have plans to extend the exchange verification system to encompass all 30 exchanges operating in Korea, including the five major exchanges. By expanding the scope of the system, law enforcement authorities aim to bolster their oversight of virtual asset transactions and strengthen regulatory measures across the industry.
Driving Transparency
These collaborative efforts between the National Police Agency and virtual asset exchanges signify a concerted drive to establish tighter controls within the virtual asset sector. By engaging with both domestic and overseas exchanges, the police seek to foster an environment of transparency, where illegal activities involving virtual assets can be swiftly identified and addressed.
The meeting represents a crucial step in the ongoing partnership between regulatory authorities and virtual asset exchanges, highlighting the commitment to maintaining the integrity of the financial ecosystem while safeguarding the interests of investors and the broader public.
