2018 hasn’t been a kind time to the growing trend that is cryptocurrency. Seems there is bad news at every turn. Recently, Coinpia, the popular South Korean exchange has put a momentary stop on both trading and deposits. This bad news comes after it was unable to execute a customer identification system that was recently required by the South Korean government.
Via Coinpia’s homepage, it was announced that the exchange would suspend all the Korean won deposits that took place on January 30 in an effort to embrace the government’s new regulations. Regulations that were forced upon investors by Korea’s Finance Service Commission. These same regulations that have hindered the Korean market.
South Korea’s Finance Service Commission announce on last month that starting from February all investors in the virtual currency market will have to start using their real names and bank accounts to continue trading. This was no doubt done as method to prevent scams, money laundering and heist from crooked traders.
That said, the sudden switch hasn’t been easy for some exchanges. Coinpia has reported that it has had consistent problems with the integration of identity verification since the start of February. The problems have gotten so bad that the exchange executives had to put a pause on all the trading as to stay with regulations with the new rules that prevent fraud and money laundering.
Coinpia’s report comes not even a week after the South Korean regulations have come in place. Its self-suspension is a first amongst cryptocurrency exchanges. It makes sense that they would be so strict with themselves going into this national change. They were one in eight of the country’s exchanges to receive a fine of $131,000 from the Korea Communications Commissions. This was due to having inadequate privacy protection in its system.