South Korea Crypto regulations: end date for anonymous trading announced

Harry Tucker 24 January 2018 NEWS

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The South Korean government has announced that anonymous trading will cease on 30 January.

South Korea's Financial Services Commission has announced that from 30 January crypto traders will be required to use their real names to buy and sell on local exchanges.

From the change date, traders will only be able to invest local currency if the exchange account name matches that of their bank account name.

The move comes as part of South Korean authorities cracking down on crypto in the country to help curb speculative trading.

On top of the date for anonymous trading, the government also outlined new regulations around the likes of money laundering and what banks should be looking for, recommending the following:

"Specifically, for users to make virtual currency transactions more than 10 million won per day or more than 20 million won for 7 days when depositing and withdrawing funds, this is the type of financial transaction you suspect for money laundering."

Korbit, Bithumb and Coinone have all confirmed that they will be complying with the new regulations. There are also six major banks who have the new requirements in place: NongHyup, KookMin, Shinhan, KEBHana, IBK and JB Bank.

On top of this, the government has also banned all exchanges from accepting foreigners from registering and trading. Minors have also been banned, with the South Korean president last month claiming that it could lead youth towards crime.

South Korea's crackdown on the crypto industry has already sent waves through the industry, as the Korean won is the third-most-traded fiat currency in the world.

On 11 January Justice Minister Park Sang-ki sent the crypto world into a frenzy, after he claimed all crypto exchanges would be shut down. The government later clarified that it was only one option being considered, as well as shutting down exchanges that did not comply with its regulations.

The likes of Ripple and Ethereum have taken the biggest hits following the government's announcements as they're extremely popular in the Korean markets.

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

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