Major Southward Korean crypto exchanges, including Upbit, Bithumb and Korbit, volition follow Coinone'due south lead in banning transfers to non-verified wallets, manufacture analysts said.

On Wednesday, Coinone announced that it would reject deposits from unverified private wallets starting Jan. 24, 2022, to reduce the risk of money laundering. All Korean exchanges, including Upbit, Bithumb, Korbit and 20 others, are expected to accept implemented similar or identical measures as Coinone by or before March 25. The Korean authorities ready the deadline for exchanges to track money transactions on and off their platforms accurately.

Korean blockchain industry annotator Jun Hyuk Ahn told Cointelegraph, "Korean exchanges are creating their own Travel Rule solutions in order to come across the requirements to operate mail service-March."

"All the Korean exchanges are going to have to utilise some travel rule system by March because that's when the government has prepare a deadline for them. Coinone only did it first."

The dominion for exchanges will besides help the Eastward Asian nation come into compliance with the Financial Activity Chore Force (FATF) Travel Rule.

According to Anti-Money Laundering (AML) compliance service Sygna, the Travel Rule stipulates that national governments must "ensure domestic exchanges share real-identity information with transmittal counterparties or face increased AML/CFT monitoring."

One of the four major exchanges in the country, Korbit, told Cointelegraph that the style it handles individual wallets is nether discussion, merely zilch has been decided notwithstanding. Information technology also stated, "Korbit identifies, evaluates, and appropriately controls AML (Anti-Coin laundering), FDS (Fraud Detection System) in virtual asset transfer transactions."

These compliance stipulations for exchanges are role of a long series of regulatory restrictions for crypto exchanges that started with the real-name bank account requirement for all users. Earlier that rule was implemented in 2022, crypto substitution accounts could exist linked to a depository financial institution account owned by multiple individuals.

By September 2022, exchanges had been required to accept Cyberspace Security Management Organization verification and a single domestic banking concern partner, which would issue real-proper name accounts. Exchanges that were unable to run into the requirements were forced to remove Korean won pairs from trading or suspend services altogether.

Related: Binance Turkey fined 8M lira for not-compliance against money laundering

The country has grappled with global FATF compliance problems related to nonfungible tokens (NFT) too. Financial regulators flip-flopped on their policy direction regarding NFTs until the latest argument from the Financial Services Commission stated on November. 24 that it would explore its options to regulate and tax NFTs.

Globally, South korea's exchanges are the outliers in complying with the rule. Equally of now, there are no other major crypto spot exchanges that crave users to verify their individual wallets.