[2018-01-23] Relief! Korean Banks to Issue New Cryptocurrency Trading Accounts;

[ivanpoldark]

Relief! Korean Banks to Issue New Cryptocurrency Trading Accounts; Anonymous Trading Ban on Jan 30

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.

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.

“Nobody, including the government, guarantees the value of cryptocurrencies,” FSC’s Kim Yong-beom stated today, 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 read:

“We will make efforts to build a more transparent and healthy transaction system with the real-name trading platform.”

https://www.ccn.com/relief-korean-banks-issue-new-cryptocurrency-trading-accounts-anonymous-ban-jan-30/

[Slow death]

It will be good for all of us if these problems in South Korea are resolved so we can move forward. last year we had China as the biggest obstacle, constantly the statements issued by the Chinese government caused the price to drop a lot and when I thought we finally got rid of China, this time China comes with another "problem with the miners" .Now we have China 2.0 (South Korea). I really hope we can arrive in February without hearing bad news coming from South Korea.

“We will make efforts to build a more transparent and healthy transaction system with the real-name trading platform.”

 when these measures are implemented the Korean exchange will serve its customers better? for example they will not be slow to answer support tickets... because if they provide a good service, then the Koreans will be lucky

[veleten]

It will be good for all of us if these problems in South Korea are resolved so we can move forward. last year we had China as the biggest obstacle, constantly the statements issued by the Chinese government caused the price to drop a lot and when I thought we finally got rid of China, this time China comes with another "problem with the miners" .Now we have China 2.0 (South Korea). I really hope we can arrive in February without hearing bad news coming from South Korea.

“We will make efforts to build a more transparent and healthy transaction system with the real-name trading platform.”

 when these measures are implemented the Korean exchange will serve its customers better? for example they will not be slow to answer support tickets... because if they provide a good service, then the Koreans will be lucky

its not about serving customers
same as with China before,Korea wants to prevent capital flight from its country
and they want to control the money coming in and out,too much of unaccounted for
money was bad for the economy and even security as the goverment and the secret services could not know
where the said money would reappear at,maybe in the hands of some extremist organisation to buy weapons or to pay a million bloggers to
start a smear campaign against the goverment etc. etc.

I agree that now it should be more clear where the Koreans are,but it is not that good
mandatory KYC checks,no anonymous accounts and potential china style prohibition of trading

[Johann Strauss]

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.

I'm sorry but what are anonymous virtual bank accounts? Aren't banks supposed to demand you to disclose your identity before you can open an account in a bank? Or is it something which is applicable only to South Korea? If this is the case, I see nothing wrong with the Korean authorities banning the use of such accounts for crypto trading.

[prehisto]

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.

I'm sorry but what are anonymous virtual bank accounts? Aren't banks supposed to demand you to disclose your identity before you can open an account in a bank? Or is it something which is applicable only to South Korea? If this is the case, I see nothing wrong with the Korean authorities banning the use of such accounts for crypto trading.

I believe that there was loop hole in laws which was used. For example some time ago it was possible in my country (EU) to buy MasterCards  in local shops and with it came virtual bank account for this Mastercard and it was used in the same manner, for laundering money.

Regarding the Korea. I am glad that it will be sorted out , it will help market to rebound  and Korea to trade soundly again.

[Johann Strauss]

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.

I'm sorry but what are anonymous virtual bank accounts? Aren't banks supposed to demand you to disclose your identity before you can open an account in a bank? Or is it something which is applicable only to South Korea? If this is the case, I see nothing wrong with the Korean authorities banning the use of such accounts for crypto trading.

I believe that there was loop hole in laws which was used. For example some time ago it was possible in my country (EU) to buy MasterCards  in local shops and with it came virtual bank account for this Mastercard and it was used in the same manner, for laundering money.

Regarding the Korea. I am glad that it will be sorted out , it will help market to rebound  and Korea to trade soundly again.

Oh, yeah, you mean prepaid cards issued by both Visa and MasterCard, and who knows by whom else, which are ready to use immediately and don't require submission of personal info. Given this, you could use such cards to transfer money to your exchange account and start buying coins there. Thanks for the lead, now I understand what they mean by "virtual bank accounts".