After almost a month of speculation and confusing news, South Korea sets Anonymous Crypto Trading Ban deadline. From 30 January, a lot will change in the way South Korea cryptocurrency exchanges operate.
23 January, AtoZForex – The South Korean financial regulator has established a deadline for the anonymous cryptocurrency trading accounts ban. As per the official statement from the Financial Services Commission (FSC), cryptocurrency investors across South Korea will be required to use real-name bank accounts in order to carry out any trading. The regulator has set the deadline for 30th January.
South Korea sets Anonymous Crypto Trading Ban deadline
As soon as the new rules will apply, South Korea-based investors will only be able to deposit funds in order to trade cryptocurrency in case if their name is identical on the crypto exchange and on their bank account.
Such move appears as a part of the financial regulator’s attempt to solidify the "know-your-customer" (KYC) compliance to limit cryptocurrency speculation. 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.
Moreover, the FSC also has noted that with the announcement, it has set out the anti-money laundering guideline for cryptocurrency exchanges. The guideline specifies certain situation where exchanges should be careful of the potentially illegal activity.
The official statement from the South Korea watchdog reads:
"Specifically, for users to make virtual currency transactions more than 10 million won per day or more than 20 million won for 7 days when depositing and withdrawing funds, this is the type of financial transaction you suspect for money laundering."
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 Cryptocurrency Exchanges Compliance
As South Korea sets Anonymous Crypto Trading Ban deadline, there are three South Korea cryptocurrency exchanges that are in line with the new regulatory requirements. For instance, Korbit has decided to restrict non-citizens from depositing the Korean Won on its platform.
Cryptocurrency exchange Korbit has stated in the announcement that its virtual account service will be canceled this month. The exchange does this in a bid to introduce accounts linked to users’ identities. As a part of the latest change by Korbit, foreign investors will not be able to deposit fund into their accounts. The official announcement from Korbit states:
“If you are not a Korean citizen, the KRW deposit to the domestic virtual currency exchange will be stopped when you switch to the new KRW deposit method in January. applies to both domestic residents and non-residents.”
Korbit has also added that foreigners will not be able to deposit Korean national currency “at any domestic cryptocurrency exchanges” when the new regulatory system will be in place.
Think we missed something? Let us know in the comments section below.