Upbit , Bithumb, Korbit and Coinone the 4 largest cryptocurrency exchanges in South Korea join together to combat money laundering using crypto.

According to fxstreet, The crypto exchanges have launched a hotline through which the customers can share information if they find any suspicious transactions with cryptocurrency.

Every day there are Ponzi schemes(financial pyramids) coming out to trap the traders. These scammers have their target on inexperienced traders as they are easy to fall in their Ponzi schemes.

That is also the reason why the crypto exchanges have come together to combat against these scammers. Now the customer or any user reports a suspicious transaction to the crypto exchange management they will then verify the transaction and if there is a malpractice they will freeze it.

The finanical regulator of South Korea have inspected the crypto exchanges in January. This was done to check whether the exchanges comply with security requirement. After this was done most of the crypto exchanges failed this test and only Korbit, Bithumb and Coinone passed it.

Some time back Korean exchange Upbit had initiated a program to reward people for identifying illegal Crypto schemes. After the launch six were rewarded for people for reporting illegal crypto related schemes. This type of programs will help them combat Ponzi schemes.

Crypto exchanges coming together to combat money laundering is a right move. Because south korea is one of the most active cryptocurrency markets. Observing the growth is when most of the scammers try to trap investors using Ponzi schemes.

Even in Europe the authorities are working to combat money laundering issues. The European Parliament declared to enforce stricter regulations on cryptocurrency sector. This is to reduce the illegal activities and money laundering cases taking place.

Crypto Exchanges join together to combat money laundering what do you think of this initiative? Let us know in the comments below.