- The platform will implement a program to block crypto-assets at the request of authorities
- Previously, 5 local crypto-exchanges introduced the mechanism
- South Korea is strengthening controls over digital assets
The South Korean National Police Agency is preparing a working meeting with Binance and 5 local exchanges.
This is the first step in expanding the new crypto-blocking system. It will allow police officers to check the wallet addresses of virtual assets and request that funds be frozen.
South Korean police had an agreement with five local exchanges earlier last year. They launched a “virtual asset exchange confirmation system”
The way it works is that when detectives look for crypto from a suspect, they inform the exchange about it.
And the platform, in turn, freezes the person’s account and checks the wallets associated with it.
Police suggested that Binance join the system. It will be the first foreign crypto-exchange to work with authorities on this issue.
The parties will also discuss improvements to the virtual asset exchange confirmation mechanism and reorganization of the hotline.
In the future, policymakers plan to implement the system in all 36 crypto-exchanges operating in the country.
The Binance exchange has an advanced compliance system and legal team. They often cooperate with police officers from different countries to help them catch criminals.
For example, Binance handed over $4.4 million worth of hacked crypto to the U.S. – these assets belonged to criminals from North Korea.