It’s the end of an era for cryptocurrecy trading in South Korea, as the government has just announced that they will start real-name trading of virtual currency. Soon all the local banks will be required to have a real-name system. Up until now, all traders have been able to be kept anonymous. With real-name trading each transaction will now be traceable. This is South Korea’s way of putting a stop to crime and fraud related to cryptocurrency.
It was said on Tuesday by Kim Yong-beom, the Vice Chairman of the Financial Service Commissions, that the new measures will be put into place next week.One of the major downfalls of this deal is that it will prevent anyone without a South Korea bank account from buying or selling bitcoins. This is a huge blow for foreigners who were highly invested in the country.
The move has been long awaited by many. As talks regarding regulations have been going on for quite awhile. The ban on anonymous trading might just be the beginning of what can mark a series of changes. The South Korean authorities are feverishly looking into anything that can lead to crimes.Their eyes are open to speculative trading, money laundering and tax evasion.
The new rules are there to make sure that a virtual currency investors earning are linked directly to the bank account owned by that individual. The rules also require that banks refuse to open accounts with cryptocurrency exchanges that do not reveal information concerning suspicious trading.
This is quite a blow to some as South Koreans have been swept completely by the cryptocurrency craze. It is also the home of many of the world’s largest cryptocurrency exchanges. Since these crackdowns the price for bitcoin has tumbled drastically. It will be interesting to see when this all goes in the months to come.