South Korea announced the date of the ban on anonymous bitcoin trading
New requirements of the South Korean government for cryptocurrency exchanges, including prohibiting anonymous trading in bitcoin, will come into force on or around January 20. This date is called by the news publication Yonhap News, citing anonymous sources..
The government’s requirement essentially tightens the know your customer (KYC) rule, which already applies to banks and cryptocurrency exchanges. From now on, account holders on cryptocurrency exchanges will have to link their identified bank accounts to them in order to be able to deposit / withdraw funds.
Among other things, the requirements aimed at combating money laundering are being tightened, as well as a complete ban on the opening of new anonymous accounts is being introduced. In addition, the government received the right to close cryptocurrency exchanges at its own discretion..
The new requirements were first announced by the head of the Office for the Coordination of Public Policy, Hon Nam Ki last week, noting that the government can no longer allow speculation in the cryptocurrency market to continue uncontrolled development, and adding that even the promotion of cryptocurrency trading will be prohibited in the country’s jurisdiction.
The implementation of the new rules will be monitored by the Financial Intelligence Agency and the Financial Supervisory Service. They will also be engaged in checks of exchanges and banks to make sure that they follow the new legislation..
Last week, Chairman of the Financial Conduct Authority Cho Heung Sik said the bitcoin bubble would burst..
“Companies existed during the South Korean IT bubble of the early 2000s, but this is not the case with Bitcoin,” he said..
When asked if South Korea can open an official cryptocurrency exchange, he replied that this topic needs careful consideration..