South Korea could implement a system for real-name identity verification in crypto trading by Jan 20. Also efficiently end anonymous cryptocurrency trading.
“The South Korean government has been developing a system that is likely to start banning the use of anonymous accounts in cryptocurrency transactions from around Jan. 20”.
Currently, many South Koreans trade cryptocurrencies anonymously through virtual accounts issued by banks for crypto exchanges.
The source reported that the efforts target are clamping down on speculative investment in the crypto market.
The approach would strengthen “know your customer” rules already in existence for use by exchanges and banks. It will require crypto exchange users to connect a bank account alongside the identifying info to withdraw or deposit.
The pressure on South Korea and which causing its heated moves against cryptocurrencies is very much understandable given the effects on world’s politics against and constraints on North Korea and the sanctions.
South Korea said it would also strengthen anti-money laundering obligation on virtual currency exchanges. It will require banks to report suspicious transactions that relate to crypto exchanges to the authorities. Banks will also be necessary to cut the cord from exchanges that do not comply with the emergency measures issued by the government.
The government has already issued a ban on issuing of new anonymous accounts since they “disseminate speculation and hinder transparency in financial transactions.” Major crypto exchanges have complied with the directive.
The police and prosecutors also plan to crack down on crimes related to virtual currency this year. This would affect market manipulation and other illegal acts.
President Moon Jae-in, the Minister of Strategy and Finance Kim Dong-Yeon announced the country’s “2018 economic policy direction” in a Korean National Economic Advisory Council meeting last week. Part of the measures is for the National Police Agency to intensify the crackdown on illegal crypto activities. It will also require periodic checking of crypto exchanges by the Ministry of Science and Technology. Also the Korea Communications Commission.
The Financial Intelligence Unit and the Financial Supervisory Service (FSS) of the country will consider the rollout of the new regulations affecting cryptocurrency.
FSS governor Choe Heung-Sik said he is expecting the bitcoin bubble to burst.
“Companies existed during South Korea’s IT bubble in the early 2000s, but that is not the case for bitcoin.”
On whether the nation would own its official cryptocurrency exchange, he said a move would need to “be reviewed carefully.”