On March 25, 2020, the four major crypto exchanges in South Korea, namely Coinone, Korbit, Bithumb, and Upbit, reportedly offered to help police investigate the sexual exploitation of underage girls in the “Nth Rooms” scandal that has sparked a national outcry.
The sexual exploitation in South Korea has been happening for years in the “Nth Rooms” incident. Notably, they would be filmed undertaking violent self-harm and sexual acts, and the videos taken were made available via Telegram chat rooms after members made crypto payments.
It is reported that at least 10,000 people utilized these chat rooms after paying fees ranging from $200 to $1,200. Most of the folks involved were allegedly famous company CEOs, sports stars, famous actors, and musicians.
Crypto exchanges seek to reveal crucial information about this scandal that has left people across the world in shock because of the inhumanity rendered to underage girls.
South Korea Crypto Exchanges To Tighten Regulations
Following requests by the South Korean law enforcement for assistance, the leading exchanges in South Korea now intend to comply with this appeal by offering crucial info that will help unravel the perpetrators in the horrific “Nth Rooms” scandal.
Earlier this month, the country’s national assembly amended the Act on Reporting and Use of Specific Financial Information, and this officiated the legalization of cryptocurrency trading and holding.
Once implemented, this law will be instrumental in averting crimes, such as the “Nth Rooms” scandal and money laundering. That’s because crypto businesses, such as exchanges, wallet companies, and trusts, will be required to have a real-name verification partnership with an approved local bank.
As a result, a verified person will be assigned a single bank account where he/she can deposit and withdraw fiat currency to and from an exchange.
The bill is a big boost to the crypto industry that has struggled to attract more mainstream users, enterprises, and institutional investors due to a lack of regulatory clarity.
Pedophiles have Previously Praised crypto
While it’s not the problem of the crypto space, it is not the first instance when criminals prefer or praise Bitcoin and other altcoins.
In October 2017, Billionaire and sex offender Jeffrey Epstein, who was recently in the middle of an infamous sex slave and child trafficking scandal, praised Bitcoin and its underlying blockchain tech.
In order to foster crypto adoption and avert criminal activities such as the “Nth Room” pedophile ring that illicitly use anonymous digital assets, crypto exchanges, wallet companies, and trusts will likely have to adhere to the new rules and regulations.
For instance, a real-name verification partnership with an approved local bank may be vital to ushering in crypto into the mainstream financial system, albeit at the expense of anonymity and decentralization in the crypto space.