South Korea Starts Real-Name Cryptocurrency Trading System Todayin News
South Korea's Financial Services Commission on Tuesday confirmed to CNBC that new measures outlined by the body earlier this month had been implemented. The regulator said it would only allow trade in cryptocurrencies from real-name bank accounts beginning Jan. 30 The new system also requires cryptocurrency exchanges to share users' transaction data with banks, a move that could potentially allow the government to impose taxes down the line. About 3 million people in South Korea are estimated to have invested in cryptocurrencies, and the nation's six banks have started verifying cryptocurrency investors' identities, Yonhap said. A ban on the opening of cryptocurrency accounts has been in place for weeks while banks work on installing the system, which ensures only real-name bank accounts and matching accounts at cryptocurrency exchanges for deposits and withdrawals. The measures outlined were intended to "reduce room for cryptocurrency transactions to be exploited for illegal activities, such as crimes, money laundering, and tax evasion," the FSC added in the document.
"I think it's the start of a crackdown on anonymity and the illegal use cases that some cryptocurrencies might have," Julian Hosp, co-founder and president of the cryptocurrency start-up TenX, told. "If afterward, investors and companies have more legal security working in the ecosystem, it's going to have some short-term downsides, but long term, it's going to have a really, really big boost," Hosp explained.Despite a boom in cryptocurrency transactions, the exchanges go largely unregulated in South Korea as they are not recognized as financial products, with the country having no rules for protecting virtual currency investors. Will cryptocurrencies become less popular in South Korea after the new measures? Share your opinion in the comments section below.
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