South Korean exchange Coinone's travel rule policy: Funds cannot be transferred to non-KYC addresses, MetaMask addresses may not be able to receive coins.

South Korean exchange Coinone announced that starting from January 24, 2022, users will be required to register a wallet in order to withdraw funds, to ensure that cryptocurrencies are not being used for money laundering or other illegal activities.

External Wallets Must Be KYC Addresses

According to the announcement, Coinone users are required to submit information such as full name, email address, or phone number to verify their wallet, which must match the registered identity with Coinone. This means that users can only withdraw funds to wallets that can verify their identity. Therefore, wallets like MetaMask and cold wallets that are not associated with verified identities will no longer be able to receive funds withdrawn from Coinone.

Users must submit photos or videos to prove the identity information associated with a particular address:

Coinone has currently opened registration for external wallets, with the registration period running from December 30th to January 23rd, 2022.

Travel Rule

The Financial Action Task Force (FATF) has a rule called the "Travel Rule," which requires financial institutions to record and store personal information of both the "sender" and "receiver" of funds.

Here comes the crucial part - FATF has already included the cryptocurrency industry in its anti-money laundering scope, and applying the "Travel Rule" to the sending and receiving of cryptocurrencies may involve many anonymous wallet addresses. Regulators will need to require service providers to identify the owners of these anonymous wallet addresses involved in transactions with their users, which could impose significant burdens on businesses in terms of methods and costs.

Taiwan's virtual currency anti-money laundering draft has also mentioned the "Travel Rule," although it has not been implemented yet. The European Union is currently proposing an expansion of regulations.

Several related news reports:

• EU Considers Requiring Cryptocurrency Wallets to be Non-Anonymous and Expanding Regulatory Categories in Conjunction with the Travel Rule
• Latest Updates from Taiwan's Financial Supervisory Commission | Key Points to Know from the Anti-Money Laundering Draft for Virtual Currency Platforms
• FATF Releases Latest Cryptocurrency Regulatory Guidelines, DeFi and NFTs Could Fall Under Regulation
• White House Orders Freeze to Review New Regulations, Crypto Industry Breathes a Sigh of Relief on Anti-Money Laundering and Travel Rule
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