South Korean Government Announced date of Banning the Anonymous Crypto Trading

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Cryptocurrency News

The South Korean government has announced the date to start banning the use of anonymous cryptocurrency trading accounts from January 20.

The Korean news agency Yonhap says that the government is turning up its investigation on expanding the local cryptocurrency market to control speculative investments in cryptocurrencies. Mentioning the anonymous financial industry sources, the report also points to bringing guidelines that will mandate exchanges to comply with raised anti-money laundering norms.

The Korean government announced its purpose of implementing the curbs among the country’s crypto trading market last week after concerns about “high losses due to excessive volatility.”

The statement described:

“Officials share the view that virtual currency trading is overheating irrationally and we can no longer overlook this abnormal speculative situation.”

The new rules will allow the traders to only deposit and withdraw with the matching account names at their banks and cryptocurrency exchanges. The new anonymous ‘Virtual Accounts’ will have the complete ban as a part of the government’s rule of mandating and strengthening KYC (know-your-customer) rules in the industry.

The announced date of banning the anonymous trading comes within a month of Korean authorities conducting onsite inspections of multiple cryptocurrency exchanges following the mid-December hack of Seoul-based exchange Youbit.

One of the senior government officials has also confirmed that the regulators will “consider” the ban on the cryptocurrency exchanges if required.

Few days before, the South Korean government had also investigated on 13 major cryptocurrency exchanges, through FTC in order to take action in accordance with relevant laws and regulations”.