Just as it was planned by the South Korean regulator earlier, New South Korean Cryptocurrency trading rules are already effective. What exactly will change from now on?
30 January, AtoZForex – South Korean financial regulator has planned to ban anonymous cryptocurrency trading account across the country. Earlier last week, it has announced that the deadline for the ban to come into effect falls on the 30th January. Therefore, today marks the day of new South Korean cryptocurrency trading rules becoming valid.
New South Korean Cryptocurrency Trading Rules Are Already Effective
However, besides the governmental intention to cap the cryptocurrency speculation, investors have welcomed the initiative. In the meantime, the spokesperson for the South Korean Financial Commission has stated that it was too early to discuss the effects of the law.
The regulator has published a document earlier stating that it would only allow trading in cryptocurrencies from real-name bank accounts. Those rules allowed banks to comply with their know-your-customer and anti-money laundering obligations.
According to the document, the measures were planned to “reduce room for cryptocurrency transactions to be exploited for illegal activities, such as crimes, money laundering and tax evasion.”
The FSC further stated that the new framework has been determined as a result of the inspection of local anonymous cryptocurrency trading accounts. The scrutiny was assisted by six domestic banks and the Financial Intelligence Unit.
The new framework also will be more spread out on foreigners that have been using South Korean cryptocurrency exchanges via a virtual bank account. The announcement by FSC has highlighted that minors and non-citizens will be limited from the new name verification service.
South Korean Exchanges Run Smoothly
A spokesperson for South Korean exchange Bithumb, has stated that operations had continued to go smoothly on Tuesday. He has added that nothing has been changed in terms of coin transaction. The exchange has begun the real-name cryptocurrency identification service this morning.
In general, markets have appeared relatively positive following the implementation of the new South Korean cryptocurrency trading rules. However, earlier this month, this government initiative has spooked some investors. This, in turn, has provoked the mixed sentiment among the South Korean officials at various ministries.
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