The world’s sixth largest cryptocurrency exchange has announced that it will alter its rules around anti-money laundering (AML) in order to protect consumers.
Huobi Group, which has been operating since 2013 but which has only had a presence in Korea since last year, is now one of the world’s most prominent crypto spaces.
As well as consumer protection, it has made this move in order to meet the rules set out by the regulator in the country, the Korean Financial Services Commission.
The platform will adjust its AML rules going forward. The firm will now devote more resources to looking at who is responsible for what deposit and withdrawal transactions, for example, in order to weed out any irregularities or fraudulent transactions.
The company also has plans to co-operate with other firms in the same space by opening communication channels which are specifically dedicated to pursuing those who use them for crime.
There are changes in store for the firm’s fraud detection system (FDS) too. The algorithms which power this system will be refreshed where needed on a continuous basis.
In addition to the above measures, it will also improve transparency around its Korean won fiat-to-crypto services.
It will also look closely at the Korean Financial Services Commission’s output and ensure that Huobi Korea is following what is set out.
In a statement, Huobi said that the move achieved several key aims all at once.
“In the interest of preventing fraud and abuse, complying with South Korea’s regulations, and protecting financial markets as well as its users, Huobi Korea is strengthening its protections against money laundering, identity theft, voice phishing, and other forms of abuse”, it said.
David Oh, Chief Communications Officer of Huobi Korea, said that the move matched the firm’s long term strategic goals.
“Though we’re relatively new in the Korean market, safety, security, and compliance have long been major priorities for Huobi as a whole”, he said.
“For that reason, this is a natural move for us and is an integral part of our plans for growth in the Korean market.”
He added that ensuring cryptocurrencies clients could trade in a safe manner was also a high priority.
“We are always trying to make sure that Huobi Korea’s customers can trade safely”, said Oh. “Our mission is to create an environment where all customers can safely trade, and we plan to actively support our clients in preventing damage caused by accidents such as voice phishing and identity theft”, he said.
Huobi Group is believed to enable 24-hour trading periods of $496 million US dollars and has a total accumulative turnover of more than $1 trillion US dollars.
In its press release on the matter, it described itself as “the world’s leading blockchain company”.
South Korea has long since had the goal of reducing money laundering.
Last year, for example, it was announced that financial regulators in the Asian country were planning to change rules before the international Financial Action Task Force visits this year.