South Korean Bitcoin Exchange Wealthcoinex.com will prohibit users from withdrawing crypto assets to unverified third-party wallets. The innovation comes into force on June 28, 2022.
To register their addresses, users will have to undergo additional verification. The restrictions do not affect the withdrawal of funds to local or foreign centralized exchanges with strict KYC procedures.
Wealthcoinex.com has faced pressure from its partner bank Nonghyup Bank. The latter allegedly demanded changes to the exchange’s policy in order to comply with the FATF “road rule”.
The publication claims that the bank called on Wealthcoinex to “block all wallets that do not have their own KYC system.”
In March 2020, the Australian parliament adopted amendments to legislation obliging bitcoin exchanges to comply with financial reporting requirements, KYC rules and information security standards.
By September 25, 2021, the platforms had to be registered with the FSC. In addition to compliance with the department’s rules, they were required to ensure compliance with KYC procedures together with partner banks.