South Korean banks involved in the cryptocurrency exchange face censorship

nRunaway Comment: Korea Financial Intelligence Analysis Institute and Korea Financial Supervision Institute to review six commercial banks involved in encrypted currency exchange, including anti-money laundering and understanding of customer identity and so on. Consider whether or not to provide bank services to cryptocurrency exchanges that refuse to provide customer information. It may also consider shutting down the cryptocurrency exchange to minimize side effects.n
nTranslation: Annie_Xun
Six South Korea’s undisclosed commercial banks are under scrutiny by regulators on their relationship with the country’s Bitcoin trading ecosystem.n
A statement on January 8 showed that the Korea Financial Intelligence Unit and the Financial Supervisory Service wanted to know whether banks that provide accounts for encrypted currency exchanges are compliant with anti-money laundering and customer identification regulations .n
n”These inspectors will investigate whether these banks comply with their anti-money laundering obligations in transactions with crypto currency exchanges and whether they will take appropriate measures to verify the identity of clients participating in crypto currency transactions.”n
nThe statement said officials will investigate whether the banks have an electronic system that matches savers names and virtual currency holders, whether banks can suspend exchanges that refuse to provide customer information, and other reviews.n
The statement said the South Korean government is monitoring encrypted currency transactions.n
n”The government continues to examine all possible options, including closing cryptocurrencies, minimizing the side effects of cryptocurrency transactions, including cryptocurrency-based fraud, cyber-attacks on cryptocurrencies, and irrational over-speculation.”n
nLess than a week ago, South Korean news agency Yonhap News announced that the country will begin regulation of a new cryptocurrency exchange later this month. In December, government officials revealed for the first time plans to strengthen the ecosystem supervision of the Korea Exchange.n

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