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Upbit Expands Partnership with Chainalysis to Improve Compliance

April 24, 2020

Chainalysis today announced the expansion of its cooperation with South Korean cryptocurrency exchange Upbit , with the aim of supporting blockchain analysis across the Asia-Pacific region (APAC).

According to the announcement, Upbit APAC will start using Chainalysis KYT (Know-Your-Transaction) to provide a secure business environment and comply with the procedures established in the different countries of the region.

While South Korean regulation oversees Upbit Korea's operations, the cryptocurrency exchange hopes to do more and more.

Strengthening regulatory compliance

Upbit Expands Partnership with Chainalysis to Improve ComplianceUpbit Expands Partnership with Chainalysis to Improve Compliance

Chainalysis KYT is an anti-money laundering crypto-product (AML) with more than 275 clients in 40 countries . It monitors transactions in real time and detects suspicious activities that could be related to crime .

Beyond improving compliance in South Korea, Upbit's partnership with Chainalysis is positioned ahead of regulatory frameworks in countries like Thailand, Indonesia and Singapore, where it hopes to expand its business, according to Upbit.

Jason Bonds, head of revenue for Chainalysis, made the following comment on the matter:

“As the use of digital and cryptocurrency assets in Asia and the Pacific continues to grow, incorporating appropriate anti-money laundering requirements is a critical step for all cryptocurrency exchanges in the region.”

Upbit's expansion plans in the APAC region

Upbit also hopes to comply with the imminent application of the guidelines of the International Financial Action Task Force (FATF) . Alex Kim, CEO of Upbit APAC, praised the expansion of the association and commented:

“As more and more markets around the world adopt new regulations, it was vital for us to find a compliance partner who could work with us as we expanded our digital asset business to new markets.”

The news comes after Cointelegraph reported in February that Upbit announced the continued ban on foreign users withdrawing their funds due to tax and Know Your Customer (KYC) issues .

The exchange cited KYC rules and the cryptocurrency tax in Korea as the two main reasons for the restriction.

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