S. Korea starts real-name trading system for cryptocurrencies
- 6 years ago
Starting today, anyone trading cryptocurrencies in South Korea will have to use their real-name bank accounts rather than anonymous accounts.
This comes as part of the government's measures to prevent virtual currency from being used for illegal activities such as money laundering and tax evasion.
Lee Jeong-yeon has the details.
Some 3-million cryptocurrency users in South Korea will now have to register their real names to make further transactions.
Up until now, currency exchanges issued anonymous virtual accounts for users to deposit and withdraw money, but starting January 30th, cryptocurrency transactions can only be made under real-name bank accounts, with matching accounts at virtual currency exchanges.
Six banks are currently working with the currency exchanges. One of the largest currency exchanges, Bithumb, is working with Shinhan and NongHyup, Upbit is working with IBK, Coinone with Nonghyup, and Korbit with Shinhan.
There have been concerns that there may be confusion on the first day of the system being adopted, with people flocking to respective banks to open new accounts for cryptocurrency trading.
In order to open new accounts at these banks, customers must have certain documents such as ID and proof of employment, to prove the account would not just be used for virtual currency trading,... as this alone is not classed as a valid reason to open an account.
This prevents minors or those without jobs from opening new accounts.
Existing cryptocurrency users have to re-register on their currency exchanges with bank accounts matching that of the currency exchange.
Unlike previous speculation that new investors would jump into cryptocurrency trading once the real-name system is adopted, pundits say that banks are wary of issuing new accounts, as they now hold more responsibility for any related problems that could occur during the trading process.
Lee Jeong-yeon, Arirang News
This comes as part of the government's measures to prevent virtual currency from being used for illegal activities such as money laundering and tax evasion.
Lee Jeong-yeon has the details.
Some 3-million cryptocurrency users in South Korea will now have to register their real names to make further transactions.
Up until now, currency exchanges issued anonymous virtual accounts for users to deposit and withdraw money, but starting January 30th, cryptocurrency transactions can only be made under real-name bank accounts, with matching accounts at virtual currency exchanges.
Six banks are currently working with the currency exchanges. One of the largest currency exchanges, Bithumb, is working with Shinhan and NongHyup, Upbit is working with IBK, Coinone with Nonghyup, and Korbit with Shinhan.
There have been concerns that there may be confusion on the first day of the system being adopted, with people flocking to respective banks to open new accounts for cryptocurrency trading.
In order to open new accounts at these banks, customers must have certain documents such as ID and proof of employment, to prove the account would not just be used for virtual currency trading,... as this alone is not classed as a valid reason to open an account.
This prevents minors or those without jobs from opening new accounts.
Existing cryptocurrency users have to re-register on their currency exchanges with bank accounts matching that of the currency exchange.
Unlike previous speculation that new investors would jump into cryptocurrency trading once the real-name system is adopted, pundits say that banks are wary of issuing new accounts, as they now hold more responsibility for any related problems that could occur during the trading process.
Lee Jeong-yeon, Arirang News