South Korea Bans Virtual Accounts Starting With 30 January 2018
The wait is over for South Korean traders. Starting with 30 January 2018, all the unknown institutions that have virtual bank accounts will be banned.
The Vice Chairman of the Financial Services Commission (FSC), Kim Yong-Beom claimed for a local media that “Traders will not be allowed to make deposits in virtual accounts that have been opened in banks unless the name of their bank account matches the account name in the cryptocurrency exchange”.
Starting with February 2018, all the investors should create a real-name account. No more anonymity in cryptocurrency transactions.
South Korea has already announced about their crash of institutions that work with cryptocurrency. The digital world will be transformed in a real one. The exchanges’ operators must provide real data about their customers and there are strict penalties in case they do not meet the requirements. All unreal accounts will be closed. There is no other way to survive on the South Korean market than to comply with the rules imposed by the state.
We want to remember that South Korea is the third most important market for Bitcoin traders. It is an important element for the cryptocurrencies’ system. Yesterday, we wrote about a new supporting bank that will invest in Bithumb and Korbit exchange platforms. It seems that South Korea will not make the usage of digital currency illegal. However, it continues to implement a new regulation that will allow the government to control this market.
Also, the Financial Services Commission has banned the non-residents of South Korea. According to the national statistics, last year six banks gained over 2,2 billion US Dollars from cryptocurrency trade.
What do you think about the new rule? How will it change the South Korean crypto market in the future?