nBankruptcy comment: South Korean financial institutions are further implementing the regulation of cryptocurrencies, has been from Monday (January 8) began to investigate six large South Korean banks to ensure that the operation of these banks comply with the government has just released encrypted currency Regulatory requirements. However, the South Korean government does not seem to be completely banning currency transactions, but to increase restrictions to reduce the risk. It is reported that a related real-name authentication system may be launched later this month.n
nTranslation: Inan
Investigate six major banksn
FIF and South Korea’s Financial Inspectorate (FSS), a unit of the South Korean Financial Commission (FSC), said on January 7 that they would join forces to investigate whether six major banks are compliant with cryptocurrencies regulations.n
The survey will be conducted from January 8 to January 11. The six banks to be investigated are Woori Bank, Kookmin Bank, Shinhan Bank, Agricultural Bank of China, KDB and IBK.n
The South Korean government announced at the end of last month the ban on the use of virtual accounts for anonymous transactions. According to South Korean media reports:n
n”FIU and FSS will check whether these banks have properly fulfilled their anti-money laundering obligations to operate their virtual accounts, and the FIU has listed over 40 suspicious transaction lists, which provide that the virtual currency is a high-risk transaction.”n
nThe Korea Herald commented:n
n”There are very few joint investigations conducted by the two agencies, and industry observers see it as more than just an examination of bank anti-money-laundering measures, but also to cool down the overheated market.”n
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Real-name system is expected to be launched around January 20n
Last week, FSS revealed that as of December 12, last year, the total legal-denominated savings on the Crypto Exchange was 2.067 trillion won (about 1.95 billion U.S. dollars). In addition, as of the end of December, the above six banks were found 111 virtual bank accounts.n
To stop anonymous trading, the government has banned banks and cryptocurrencies from issuing new virtual accounts or adding new users.n
The South Korean government is developing a real-name identification system that is expected to be launched around January 20. South Korea’s “Central Daily” wrote:n
n”The bank is developing a real-name authentication service that allows crypto-currency deposits and withdrawals to proceed, provided that the trader’s account is verified and in line with its account on the virtual currency exchange.”n