Bithumb, Coinone, and Korbit Launch Travel Rule Joint Venture 'CODE'

Plan to Establish Travel Rule System by March Next Year

[Asia Economy Reporter Gong Byung-sun] Domestic cryptocurrency exchanges Bithumb, Coinone, and Korbit have officially launched a joint venture company called ‘CODE’ to establish a Travel Rule system that tracks the status of fund transfers and verifies identities.

On the 31st, according to the cryptocurrency industry, Bithumb, Coinone, and Korbit announced that they have established the joint venture CODE through joint investment. The total investment amount is 900 million KRW, with each participating company equally sharing one-third of the equity and voting rights.

The CEO of the joint venture will be appointed alternately every two years by the CEOs nominated from the three companies. The initial CEO is expected to be Cha Myung-hoon, CEO of Coinone.

Previously, the three companies individually developed systems to comply with the Travel Rule requirements set by the Financial Action Task Force (FATF). After the establishment of CODE, they plan to create the Travel Rule system by linking and jointly developing the systems each exchange had been working on. CODE aims to complete the system by the end of March next year in accordance with the amendment to the Act on Reporting and Using Specified Financial Transaction Information (the Special Financial Transactions Act).

A CODE official stated, “Going forward, the joint venture plans to secure the best scalability by linking with international standards,” adding, “It will expand to global standards by connecting not only domestic exchanges that have passed the Special Financial Transactions Act but also trusted global exchanges in each country.”

This content was produced with the assistance of AI translation services.