In order to provide safe and secure cryptocurrency deposit services to investors, Coinone has announced that it will stop allowing withdrawal of money to unverified cryptocurrency wallets. The cryptocurrency exchange based in South Korea has also revealed that customers will not be able to withdraw the money to the cryptocurrency wallets which haven’t yet completed the KYC formalities with the exchange. After this announcement, some crypto wallets, including the likes of Ledger and MetaMask, are now out of the list of eligible cryptocurrency wallets to which withdrawals can be made in the future.
It is interesting to note that this particular development by one of the major cryptocurrency exchanges in South Korea will have significant implications for the domain of cryptocurrency. No doubt, this is a good step because it will strengthen the safety and security credentials, and users have to now register their external cryptocurrency wallets to the exchange before they can become eligible for making the withdrawals. These new guidelines will come into effect from January 24 next year, and customers have to register their external wallets with the exchange to make sure their withdrawal can be processed as before.
The definition of the external wallets as proposed by the cryptocurrency exchange include both cold and hot wallets, which work on the basis of third-party offers. It is also important to note that these Wallets must have the capability to register themselves, which in other words means these must have the information related to Know your customer (KYC) in place.
This new provision that has been put in place by the cryptocurrency exchange aims to ensure that digital coins will not be used for illegal purposes, including money laundering, among others. In general, also, it is a good measure that will help to strengthen the credibility and overall reliability of the exchange as well as the crypto segment.
The new guidelines issued by Coinone are in accordance with the reform process initiated by the South Korean Government to regulate cryptocurrencies and make sure that these are not used for any illegal purposes. With Coinone now announcing these new measures, we can expect other major players in the cryptocurrency exchange segment in South Korea to come out with similar provisions in the coming days.