[2018-01-30] South Korea Starts Real-name Trading System for Cryptocurrencies

[entrepmind23]

A real-name trading system for cryptocurrencies became operational in South Korea on Tuesday (Jan 30), with the use of anonymous bank accounts in transactions banned to prevent virtual coins from being used for money laundering and other illegal activities, Yonhap news agency reported.

The trading system is also part of the South Korean government's latest measures to curb speculative investment into virtual coins amid growing fears that a cryptocurrency bubble may be set to burst.

About 3 million people in South Korea are estimated to have invested in cryptocurrencies, and the nation's six banks have started verifying cryptocurrency investors' identities, Yonhap said.

A ban on the opening of cryptocurrency accounts have been in place for weeks while banks work on installing the system, which ensures only real-name bank accounts and matching accounts at cryptocurrency exchanges for deposits and withdrawals.

In South Korea, foreigners and underage investors are banned from opening cryptocurrency accounts.

The new system also requires cryptocurrency exchanges to share users' transaction data with banks, a move that could potentially allow the government to impose taxes down the line.

Some cryptocurrency traders and exchanges predicted that prices of virtual coins will rebound when banks allow opening of new cryptocurrency accounts, according to Yonhap.

Others said prices will adjust further amid media reports that only four major exchanges - Bithumb, Upbit, Coinone and Korbit - are likely to attract new investors as banks are expected to reject transactions with small and mid-sized exchanges.

Cryptocurrencies like bitcoin and ethereum have rapidly gained popularity among South Korean investors hoping to make quick money.

Despite a boom in cryptocurrency transactions, the exchanges go largely unregulated in South Korea as they are not recognised as financial products, with the country having no rules for protecting virtual currency investors.

Source: http://www.straitstimes.com/asia/east-asia/south-korea-starts-real-name-trading-system-for-cryptocurrencies

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[Irvinn]

Most countries can come to such rules of regulation of crypto-currencies and it is necessary to reconcile with this. The state has the right to establish such rules and they are quite logical from the point of view of the state. South Korea banned the trade in crypto currency to foreigners and minors, took measures to ensure that there were no anonymous accounts in the crypto currency and introduced a profit tax from the crypto currency, this, in my opinion, more or less normal conditions for trade. However, anonymity in the crypto currency almost in this country disappears. It's not very good, but there's nothing to be done.

[limek]

Some country may implement the Self-regulation policy. The status overall the crypto space just seen uncertain recently. However, we starting to see the huge global influx of users and mainstream tycoons that will spur the economy. The No anonymous accounts, somehow seen to be unfair for the unbanked persons and may aid sanction in corrupted people's countries. Some countries are accepting while other are not to an extent... Just a Beginning...

[1Referee]

Funny thing is how this 'news' gets so much attention, while full verification (if you're a fancy person; real-name trading) has been part of the game for quite a while now. It's likely the general media points who try to make this look like a big thing to attract clicks, because otherwise it would just be a boring subject that isn't anything new. South Korea is a fairly new market, but one that's experiencing a rapid wave of growth. It's growth that surpasses the government's ability to keep up with fitting regulations, so for that reason there will be more regulations kicking in this year. I just hope it won't get blown out of proportion like what we have experienced with this real-name trading nonsense.