The South Korean government announced that six major banks would start providing crypto trading services, account creation and account operation from Jan 30th. This will happen under the government’s new system that aims at sharing or storing data about cryptocurrency trades, users, and accounts.
The new system will ensure that “only real-name bank accounts and matching accounts at cryptocurrency exchanges”use for withdrawals and deposits. However, it is also targeting existing accounts, meaning it could board existing accounts on it.
The Financial Services Commission(FCS) Korea unveiled the details of the new system for cryptocurrency accounts on Sunday.
An official was quoted as saying,
“Banks are expecting to introduce the system, which will require cryptocurrency exchanges to share users‘ transaction data with banks, late this month or early next month.”
The six commercial banks include KB Kookmin Bank, Nonghyup Bank, Shinhan Bank and Industrial Bank of Korea.
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It will end the current system of virtual account creation and usage that allows for anonymous crypto trading. It might also, finally, quell fears that the government is planning to ban cryptocurrency exchanges and trades.
Notably, the accounts issuing by banks for crypto exchange customers to use to buy or sell virtual currencies at exchanges. It is also expecting to block illegal funds to prevent the use of cryptocurrencies in money laundering. It will also avoid trading by minors who won’t allow trading in virtual money.
For now, the regulators have banned financial institutions from issuing new virtual accounts until the new system is in place. It is expecting that it will also facilitate for taxation because the government has announced plans to tax cryptocurrency exchanges.
the new announcement said,
“As the government can access virtual currency transaction information, it will speed up taxation based on this information”.