South Korean regulators will implement strong supervision of privacy coins

According to South Korean media reports, the Korean Financial Services Commission recently announced that from March 2021, Korean exchanges will be prohibited from providing cryptocurrencies with a high level of money laundering risk.

The so-called cryptocurrencies with a high risk of money laundering mainly refer to those cryptocurrencies that cannot be supervised. These cryptocurrencies have a high degree of privacy and are extremely difficult to track.

Therefore, if these cryptocurrencies are used for money laundering, law enforcement agencies cannot track them, while other mainstream cryptocurrencies are not very anonymous and can be tracked.

To say that the privacy of cryptocurrencies, Monero, and Zerocoin are definitely in the front. These cryptocurrencies come with mixed currency properties and do not support the public query of transaction records.

The technology adopted by Monero makes its mining difficulty the same as that of Bitcoin. If you want to perform a brute force attack, the cost is very high.

As for the ring signature technology used, tracking is almost impossible, although some research companies claim to provide tracking of some high-strength cryptocurrencies.

In fact, South Korean regulators have no good way to supervise Monero XMR, Zerocoin ZEC, and DASH, so they can only directly block these currencies.

According to the requirements of South Korean regulators, exchanges must implement real-time and strict KYC (Know Your Customer) policies, and regularly report data to South Korean regulators.

Even so, if cryptocurrencies such as Monero continue to be allowed, it may still cause money laundering problems and cannot be traced, so the regulator chose to ban it.