Korea Cryptocurrency Exchange will share user data with banks

nBankruptcy Commentary: While a series of regulatory measures against encrypted currency transactions in South Korea have been opposed by most South Korean cryptocurrencies, the government is still steadily deploying the relevant regulations. For example, six commercial banks in South Korea are expected to implement real-name systems by the end of this month and will continue to support encrypted currency transactions. However, exchanges will have to share user data with these banks to ensure government control while preserving the market. It can be seen that the goal of South Korean regulators is not to eliminate such transactions but to maximize their inclusion in the regulatory framework.n
nTranslation: Inan
The South Korean Financial Commission (FSC) announced more details on the real-name cryptosurrency account system last Sunday. According to reports, FSC officials said: “The government plans to require encrypted currency exchanges to share user transaction data with banks.” The official stressed:n
n”The bank expects to launch the system later this month or early next month, which will require crypto-currency exchanges to share their users’ transaction data with banks.”n
nThe new system will end the use of virtual accounts that currently allow anonymous trading of cryptocurrencies. These virtual accounts are set up by banks and are available to crypto-currency exchange clients for trading cryptocurrencies on exchanges.n
According to news media, South Korean regulators have banned financial institutions from issuing new virtual accounts until the new system is in place to ensure that “only the bank accounts of the real name bank and the counterparts of the cryptocurrency exchange” can access the money.n
According to the “Digital Times” report, FSC said in a statement that six commercial banks, including ABC, South Korea’s Bank of Korea (IBK), Kookmin Bank and Shinhan Bank will implement the new system starting January 30 . The system was originally expected to be implemented around January 20. The media quoted a detailed account of FSC officials when it was reported:n
n”Six commercial banks that support virtual currency trading will install a new deposit and withdrawal system to become a real name system and begin offering full service starting January 30.”n
nHowever, the report also pointed out that this new service is oriented to existing virtual account users, and the opening of new accounts is still temporarily not allowed.n
Following the inspection of six large South Korean banks, the FIU is preparing to set anti-money laundering guidelines in relation to cryptocurrencies.n
The new real-name system will meet anti-money laundering standards. It is said that the guideline “is expected to prevent the laundering of illicit funds and filter those who are not allowed to invest in virtual currency.” Banks have anti-money laundering obligations, which will require them to inspect and maintain the transaction records of cryptocurrencies traders.n
In addition, the new system will allow the government “to have some degree of access to virtual currency transaction information through the bank.”n
The report also pointed out:n
n”As the government is able to get information about virtual currency transactions, the move will drive taxation based on this information.”n

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