One of the largest cryptocurrency exchanges in South Korea, supported by Kakao Corpip Upbit, paid six traders for reports of fraudulent schemes related to cryptocurrencies. The Exchange received ten such applications and selected six of them, the authors of which have been awarded. The exchange announced in March this year the introduction of a system of user compensation for the identification of fraudulent multi-level schemes related to cryptocurrencies and ICO.
" Upbit pays a reward of 1 million won (about $ 931) to the original applicant", notes the operator of the Dunamu Inc.
Last week, Upbit stated:
"Since the introduction of the system in total, we have received 10 fraud reports, and 6 of them we have chosen for our system of rewards. On June 6, we paid 1 million won and expressed our gratitude to the applicants. We provide monetary rewards to users who reported fraudulent activities involving crypto and ICO investigative bodies (police, prosecutors) and provided the necessary evidence to confirm their application."
At the same time, Upbit noted that even in those cases when the applicants did not meet all the necessary conditions, the site still "decided to reward users for participating in the system and for their efforts to create an active and responsible crisis community".
Upbit Exchange previously held the first place in the volume of trade in cryptocurrencies in South Korea. At the same time, it is on the eighth place in the world crypto-world rating with a daily trading volume of $ 201,594,215 according to Coinmaketcap. Upbit dropped to second place in the list of South Korea's largest crypto-banks after Bithumb received the palm of the championship in terms of trading volume from $ 239,054,683 daily turnover. Perhaps, the problems of the stock exchange with the regulators also played a role - last month it was reported that the authorities of South Korea brought up the fraud case on Upbit.
Partnership with Thomson Reuters
In addition to the fraud notification system Upbit also recently implemented a system called World Check in partnership with the multinational media company Thomson Reuters.
The system is designed to support the transparency of cryptocurrency transactions and strengthen the company's KYC system. World Check aims to be "a reliable and accurate source of risk information that will help companies comply with regulatory obligations, make informed decisions and prevent unintentional use of the business to launder proceeds from criminal activity," the company said in a statement.
When a user joins Upbit, information about him is checked against the World Check database. If the security risk for crime and terrorism is defined as high, the registration process is immediately terminated. The system also checks the information on the criminal records of clients daily. The company believes that this will help prevent money laundering and terrorist financing operations using cryptocurrency.
In March of this year, Upbit announced the launch of the country's first cryptocurrency index. It was reported that UBCI (Upbit Crypto Index) will be measured by four stock indices based on long-term data of the exchange transactions by calculating standard values in confidence intervals. Upbit launched three indexes in April, and the last remaining strategic index will be launched at the end of this year.