Bitcoin, Cryptocurrency And Blockchain News

South Korean Anonymous Trading Accounts to Be Banned as of January 30th


Ask any crypto enthusiast and they will reveal that this move by the South Korean Government is set to protect the South Korean Won, which is bound to face a hit as more and more people move towards kicking out fiat currency. If this is a government lodged war, however, the crucial question remains as to whether they are winning or not.

Reportedly, South Korean regulators have given the green light to the ban on all anonymous crypto trading accounts. Although this is a relief to cryptocurrency holders who had had their accounts previously frozen, it is not all good news to foreigners and under-age investors in South Korea’s crypto space. Basically, anonymous crypto trading transactions and crypto trading by non-Koreans as well as underage individuals will come to an end on 30th January 2018, in a move set to comply with a transparent money system, and in accordance with anti-money laundering regulations.

In a bid to comply with the new regulations, one must have a bank account registered in one’s official name, and the current grace period is to let people comply with the new regulations.

What Does This Move Mean for Cryptocurrency Traders?

Seeing as cryptocurrency traders will have to have deposit accounts in exchanges linked to their legal names, this opens them up to government scrutiny, including the sharing of users’ transactions by crypto exchanges .This move, according to the government, is a means of controlling conjectural investments that have become popular among the South Korean public.

The President’s Stance

While the President’s hand in pushing for policy as opposed to a ban is evident, Non Korean nationals will not be allowed to transact in cryptocurrency under the new regulations as the government will have no hold over these, and they do not wish to provide a loophole to beat the system.

The Hand of the Korean Judiciary

On the other hand, the Korean judiciary pushed for a total ban on cryptocurrencies altogether, while other lawmakers with as much say in the matter advised against a total ban, but advised caution.

The caution that has been raised is that nobody controls cryptocurrency and thus there is no value guarantee as opposed to everyday well-known investments such as the money market fund, shares and bonds.

Bithumb welcoming regulation

Korea’s big-time crypto exchange (Bithumb) is welcoming the new policy by government with open arms.  The company issued a statement where they vowed to make an effort to ensure transparency. This was definitely a win for them as they would rather not lose business entirely if the government is to head in the direction of a total ban.

Image Credit: Deposit Photos

Will South Korea win this war they are trying to lodge against anonymous cryptocurrency trading? Let us know what your thoughts are on the subject.