South Korea issues new regulations for Anonymous Crypto Trading
Jan 03, 2018 Posted / 8484 Views
The latest change in regulations by South Korean governments states that a new system of working will be enforced amongst diverse exchanges, with a change of real-name identity authentication for cryptocurrency traders. This new system can be implemented around January 20, hence ending the contemporary practice of permitting anonymous crypto trading.
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This proposal fundamentally empowers the idea of "know-your-customer" which is quite famous in existing financial exchanges and banks. It will necessitate cryptocurrency exchange users to unite their bank account along with their identity and basic personal information in order to deposit or withdraw funds.
The South Korean government announced its decision last week in which it stated that the government would implement a virtual currency trading real-name system. Through this regulation the government is proposing to eliminate virtual currency speculation. The media reports through specialist sources acknowledged on Tuesday that the South Korean government is planning a system, which will soon ban the usage of unidentified and unlike accounts in cryptocurrency transactions from around Jan. 20.
Since last years the citizens of South Korea were trading in cryptocurrencies anonymously with the help of their virtual accounts. However, these accounts where issued by banks only for crypto exchanges to assign to their customers. However, the Korean regulators are considering that these anonymous accounts are utilized as virtual currency trading accounts to enlarge the speculation base and hamper clarity in financial transactions. Now the government is completely abstaining the issuance of new virtual accounts, and the major crypto exchanges have already complied with these changes in the regulation.
The South Korean government has also announced that it will “strengthen banks’ anti-money laundering obligation on virtual currency exchanges.” This will require financial institutions to report suspicious transactions related to crypto exchanges to the authorities. Banks must also “exclude financial services for unhealthy exchanges that do not follow the government’s emergency measures,” the regulators described.
Additionally, “the prosecutors and police have set up a plan to crack down on virtual currency-related crimes in 2018.” They will scrutinize and examine the illegal acts such as market manipulation and detain the people who are involved in such acts, the government detailed.
At the meeting last week of the Korean National Economic Advisory Council, presided over by President Moon Jae-in, the Minister of Strategy and Finance Kim Dong-yeon announced the country’s “2018 economic policy direction”
It includes plans for the National Police Agency to strengthen up the clearing out of illegal crypto activities. The Korea Customs Service, the prosecutors’ office, and the police are investigating the definite violations that have emerged in the Foreign Exchange Transactions Act. Meanwhile, the regulators have remarked that the Ministry of Science and Technology and the Korea Communications Commission will at regular intervals check cryptocurrency exchanges
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