Korean Banks to Issue New Cryptocurrency Trading Accounts.
In a week from now, South Korea will enforce its ban on anonymous bank accounts used in cryptocurrency trading. In conjunction, six domestic banks will issue new trading accounts that follow KYC norms.
According to multiple reports on Tuesday, South Korean regulators have rubberstamped the ban on anonymous cryptocurrency trading through anonymous virtual bank accounts in the country. Strictly speaking, the long-anticipated move will not allow traders to make deposits into their wallets at domestic cryptocurrency exchanges unless their names on their depositing bank accounts matches the account name at cryptocurrency exchanges.
At the same time, on January 30, at least six South Korean banks will issue new trading accounts for cryptocurrency transactions. As banks rollout these new accounts with a system that will match names between banking and crypto-exchange accounts, existing anonymous virtual accounts will be banned.
The six banks will include NH Bank, the Industrial Bank of Korea and, as previously reported, the Shinhan Bank, the second largest financial institution in Korea.
The application of the real-name trading system will also require exchanges of cryptocurrencies to share user transaction data with banks. This move is reportedly a part of the government’s ongoing scrutiny into “speculative investments” by much of Korean society into cryptocurrencies.
While Korea’s Justice Ministry called for an outright ban on cryptocurrency trading and exchanges, other lawmakers and regulators have dismissed the hardline approach. South Korea’s Presidential Office weighed in on the topic, stressing that a sweeping ban was one of several measures being considered for regulating the cryptocurrency sector.
Today’s announcement from the South Korean government further hints at a policy that is unlikely to include that sweeping ban, which will now only extend to non-Korean nationals and anonymous trading.
Kim Yong-beom said today that “Nobody, including the government, guarantees the value of cryptocurrencies,” and resorting to cautioning adopters of investments rather than any warning of a ban. “Given its highly volatile nature, please be cautious when making investment decisions.”
The news will come as a relief to cryptocurrency adopters and exchanges alike. According to Yonhap, major Korean exchange Bithumb is welcoming the government’s new policy, with a statement that says:
“We will make efforts to build a more transparent and healthy transaction system with the real-name trading platform.”
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.