New South Korean Crypto Regulations From January 20th
South Korea will ban anonymous exchange accounts in less than 3 weeks
The South Korean government have reportedly set a date for a set of new regulations, which will see a complete ban on annoymous exchange accounts. According to Yonhap News, January 20th will see a raft of new laws implemented across the country.
What Are the Regulations?
- Deposits and withdrawals on exchanges must be tied to real-name bank accounts.
- Exchange compliance related to anti-money laundering policies will be stepped up
- Failure to demonstrate compliance will result in exchanges being shut down
South Korea is one of the world’s largest traders of cryptocurrency, with four very large exchanges: Bithumb, Korbit, Coinone and Upbit. However, this “big four” have already started to make the necessary changes well in advance of the upcoming regulations, and in response to other changes that came into force on January 1st.
What Changes Have Been Made?
- Upbit, Coinone and Bithumb have ceased offering trading accounts to users under 19, and have given deadlines for existing young users to withdraw their currencies.
- All four have suspended issuance of virtual bank accounts in anticipation of the upcoming identity regulations
Come the implementation of regulations, users will have had ample time to get their affairs in order. These major exchanges have taken the decision to move quickly rather than contest the decisions. On the face of it, the regulation changes are aimed at protecting users and minors. The effect on the exchanges themselves should be minor, if noticeable at all financially. However, the penalties that could be imposed if exchanges are found not to have complied are significant. It is smaller exchanges that will be in most danger if the regulations are swiftly followed by spot inspections as expected.
Image Credit: Deposit Photos
What do you think about the new regulations? Will exchanges manage to comply? Do these signal the beginning of the end for the notorious freedom to trade that has made South Korea a leading crypto trader? Let us know in the comments!