The Korean crypto-currency traders will disclose their real name before the end of the month
As the crypto-currency fever in the country grows, the South Korean government is redoubling its efforts to curb the trade in digital assets, such as bitcoin. The last step taken will make registration under its real name mandatory for traders.
According to the Korean media, today (January 23), the South Korea Financial Services Commission announced that by January 30, a system for registering a genuine name for trading in crypto-currencies will be introduced. Investors will have to convert their virtual accounts into real banks in order to continue trading. Deposits and withdrawals are allowed only between bank accounts with the personal data of the trader and the crypto-currency accounts linked to them, opened in the same bank. The system will cover six banks.
This step was taken shortly after the South Korean authorities checked two major exchanges and proposed the idea of restricting the trade in tokens, from taxation to a direct ban on domestic transactions.
South Korea accounts for about 20% of global transactions in bitcoin, with many Koreans investing a significant part of their savings in digital assets, as there are no investment opportunities with high returns for retail investors in the country. Efforts by the government to suppress trading crypto-currency transactions caused a wide public response in the country. A petition demanding the termination of prohibitions has collected more than 200,000 signatures in less than a month, and, according to the laws, now requires a response from the government.
Laws against crypto-exchange exchanges were first introduced late last year by Hon Nam Ki, head of the Office for the Coordination of Public Policy. While bitcoin beat historical records, Hon told the local media that the government “can not allow this abnormal speculative situation to continue.” Last week, the South Korean news agency Yonhap, citing unnamed financial authorities, said that investors would be fined for refusing to sign their virtual accounts with real names. Details about the measures of restraint have not yet been disclosed.
The mandatory use of a real name can successfully exclude minors or foreign non-residents from the market and prevent money laundering and fraud. This system can also act as a database that helps to collect transaction-related taxes on exchanges: the government of South Korea earlier this week reported that this year it is planned to collect up to 24% of corporate and income taxes from local currency exchange offices.