South Korea will enforce its ban on anonymous bank accounts used in cryptocurrency trading in a week from now. 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.
In tandem, at least six South Korean banks will issue new trading accounts for cryptocurrency transactions on January 30. 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 on the same day, Financial Services Commission (FSC) vice-chairman Kim Yong-beom told reporters today.
The six banks will include NH Bank, the Industrial Bank of Korea and, as reported previously, Shinhan Bank – Korea’s second largest financial institution.
Enforcing the real-name trading system will also mandate cryptocurrency exchanges to share the users’ transaction data with the banks. This move is reportedly a part of the government’s ongoing scrutiny into ‘speculative investments’ by much of Korean society into cryptocurrencies.