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The South Korean government has been working on a system to enforce real-name identity verification on cryptocurrency traders. This system is expected to be implemented around January 20, thus ending the current practice which allows for anonymous crypto trading.
Also read:Â Russian Regulators Draft Law to Restrict Crypto Mining, Payments, and Token Sales
Governmentâs Real-Name System
The Korean government announced last week its decision âto implement a virtual currency trading real-name system as a special measure to eradicate virtual currency speculation.â According to Yonhap, sources familiar with the matter said on Tuesday:
The South Korean government has been developing a system that is likely to start banning the use of anonymous accounts in cryptocurrency transactions from around Jan. 20.
So far, Koreans have been able to trade cryptocurrencies anonymously through the use of virtual accounts, which are issued by banks for crypto exchanges to assign to their customers. However, the regulators believe that these accounts are âused as virtual currency trading accounts to disseminate speculation and hinder transparency in financial transactions.â The issuance of new virtual accounts have now been prohibited, which major crypto exchanges have already complied, as news.Bitcoin.com previously reported.
Korean government announcing regulatory measures.
Other Crypto Regulatory Plans
The government also announced that it will âstrengthen banksâ anti-money laundering obligation on virtual currency exchanges.â This will require financial institutions to report suspicious transactions related to crypto exchanges to the authorities. Banks must also âexclude financial services for unhealthy exchanges that do not follow the governmentâs emergency measures,â the regulators described.
Furthermore, âthe prosecutors and police have set up a plan to crack down on virtual currency-related crimes in 2018.â They will investigate illegal acts such as market manipulation and arrest the people in charge, the government explained.
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 countryâs â2018 economic policy direction.â
South Koreaâs â2018 economic policy directionâ meeting.
It includes plans for the National Police Agency to intensify the crackdown on illegal crypto activities. The Korea Customs Service, the prosecutorsâ office, and the police have been put in charge of investigating actual violations of the Foreign Exchange Transactions Act. Meanwhile, âthe Ministry of Science and Technology and the Korea Communications Commission will periodically check cryptocurrency exchanges,â the regulator detailed.
What do you think of the governmentâs real-name verification system and other regulatory plans? Let us know in the comments section below.
Images courtesy of Shutterstock and the South Korean government.
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The post South Korea Expected to End Anonymous Crypto Trading by January 20 appeared first on Bitcoin News.
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