The South Korean Cryptocurrency Traders Face Fines if they do not convert from existing virtual accounts, which allows for anonymous trading, to real-name accounts.
15 January, AtoZForex – The South Korean financial authorities announced on Sunday that cryptocurrency traders would be fined for declining to convert their virtual accounts into real-name trading account. Currently, cryptocurrency traders in South Korea can trade using the virtual account. However, the financial authorities have banned banks from issuing new ones. Also, obligated them to install the new system which ensures only real-name bank accounts.
South Korean Cryptocurrency Traders Face Fines
South Korea is the third biggest marketplace for cryptocurrency traders and most of the Bitcoin traders trades using KRW. According to the authorities, cryptocurrency traders allowed to convert their virtual accounts into real-name ones within this month. Also, those who refuse to submit to real-name identification will have to pay the penalty. It is yet to declare the amount of fine if someone abides the requirements.
The South Korean government stated:
“Currently, we are establishing a taxation plan for virtual currency transactions centered on the accounting department. If a virtual currency real name verification system is introduced, we will be able to obtain data on individual traders.”
In 1993, violators of the country’s real-name financial transaction system slapped with 60% fines on their assets.
Moreover, opening unknown cryptocurrency trading accounts likewise restricted until the point when banks introduce a framework that guarantees genuine name ledgers. Also, a wide number of securities agencies are asking their staff members to refrain from investing in cryptocurrencies. On Friday, the administrator of the local securities exchange sent text messages to there employees, approaching them to avoid exchanging cryptocurrencies.
Additionally, on January 13, the government held a meeting with representatives of the 6 banks and asked them to implement the new real-name system as planned.
A financial official stated:
“Even if virtual currency transactions are entirely illegal, the real name verification system needs to introduced by itself.”
Following the government’s instruction, banks reportedly agreed to implement the new system as planned.