Coinone is a cryptocurrency exchange platform operating out of South Korea. The exchange recently decided to comply with the regulatory requirement set by the local government for the businesses that are operating in the region. As reported by local media outlets, the customers of the exchange now need to verify their account credentials.
According to the new announcement, the changes have been made to prevent any illegal financial activities. The platform will now ask the users to submit legal documentation to cross-check their legal names and registration numbers. Furthermore, the transfer of funds to the external digital wallet addresses that are unverified.
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Coinone recently told its users that they should get submit their verification details for external wallets before Jan 23rd. After the mentioned deadline, all outgoing transactions to unverified addresses will be blocked. The customers also need to comply with the KYC checks before the fund withdrawal request.
The users also need to apply for verification of the hardware wallet like Ledger. The exchange is trying to comply with the requirement of the government to prevent an increase in financial crimes in the country. In March, the South Korean government passed a bill to mandate the ISMS authentication for cryptocurrency exchanges.
The financial regulators in South Korea have been actively working on providing a better regulatory framework for cryptocurrencies. With real-name verification and ISMS authentication, the government can implement the capital gains taxes on all ROI from digital assets investment above $2,300.
Coinone is not the first crypto exchange to comply with the authentication legislation. Bithumb is another digital asset market in South Korea that recently updated its KYC and AML parameters in light of new regulatory guidelines. Coinone will be able to keep accepting the withdrawal request submitted by cryptocurrency exchanges like Binance and FTX.