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November 19, 2019

South Korea forbids anonymous trade of crypto-currencies

crypto-currenciesSouth Korea forbids anonymous trade of crypto-currencies to prevent the possibility of buying and selling Bitcoins by children under 19 and criminals. The country’s market is the third largest in the world for digital money trading after Japan and the United States. The new rules, which are expected to enter into force at the end of the month, will also not allow foreigners without open local bank accounts to buy a Bitcoins. The Korean government is still considering imposing a complete ban on online platforms from which to buy or sell crypto-currencies.

The local authorities are planning to oblige local banks to create a crypto-currencies trading system with real names that will allow traces of transactions that are currently anonymous to be tracked.

Once the new system has started, the existing accounts that have so far traded with virtual currencies will no longer be usable. The efforts are aimed at preventing the use of digital currencies for money laundering, tax evasion and other criminal activities.

The new requirements are intended to ensure that the money of crypto-currency investors come from bank accounts held by the same individuals.

The Financial Services Commission in Seoul has warned that trading platforms should pay close attention to prevent money laundering attempts, all virtual currency transactions for more than 10 million USD per day or more than 20 million USD per week.

The South Korean government has caused a lot of dissatisfaction earlier this month after it said it was drafting a ban on banning crypto-currency, although it later explained that more consultations would be made before a decision is taken. An online petition against “unjustified regulations” has already collected over 220,000 signatures.

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