SOUTH KOREAN BANKS TO COOPERATE WITH CRYPTO EXCHANGES, SHARE DATA

Six South Korean banks will support the cryptocurrency trade. South Korean crypto investors are now obliged to use their real names on their exchange accounts and link that to one of the six participating local banks. Seoul says the move is to fight fraud and money laundering, but critics claim it is only to keep track of investors and their income.

USER DATA

Korean Financial Services Commission (FSC) announced the new regulations early on Tuesday. Exchanges will be required to provide information to banks on transactions made by users. Banks will also be responsible for creating a system that will be responsible for data transmission. Investors have until January 30th to register, or they may be able to access their funds. The new system will end the practice of creating virtual accounts. From now on investors have to link their bank accounts to cryptocurrency exchange accounts. As a result, users will no longer be anonymous.

BIG SIX

FSC announced that six commercial banks (in Korean) would participate by January 30. Banks will share information with each other, the government, and exchanges. In order to deposit or withdraw funds, investors must have a real-name account. Seoul’s actions aim to address two objectives: the prevention of money laundering, and to monitor personal income.

GOVERNMENT CHECKS

One of the founding principles of cryptocurrency is how they promise to free users from central governments and financial institutions. However, contrary to the hopes of cryptocurrency idealists, regulators are looking for ways to significantly impede anonymous access to cryptocurrency. On the other hand, thanks to the exchange regulations cryptocurrency will likely become less volatile and integrated into the global financial system.