Korean crypto traders will need to identify themselves under new sweeping regulations regarding Bitcoin usage. It is hoped by associating real bank accounts with identifiable information to crypto accounts on exchanges, money launderers and criminals using bitcoin can be identified and prosecuted in Korea.
Previously we reported the ambiguous position of South Korea on bitcoin as the state went from denying a blanket ban before one apartment threatened a ban could still be in play. While these mixed messages did cause considerable volatility in the bitcoin market with prices swinging from $9600 to $13000 all in one week, Korea has announced its first step to regulating the cryptocoin. It announced that all crypto traders would need to identify themselves with exchanges also being made to cooperate with the new KYC procedures being enforced.
“Specifically, for users to make virtual currency transactions more than 10 million won per day or more than 20 million won for 7 days when depositing and withdrawing funds, this is the type of financial transaction you suspect for money laundering.”
A number of huge Korean banks are also said to be cooperating with the states request including NongHyup, KookMin, Shinhan, KEBHana, IBK, and JB Bank according to Coinone, one of Korea’s biggest crypto exchanges. Overall the new regulations are much lighter than a proposed blanket ban on the cryptocurrency. Markets also reacted positively to the news as prices jumped up over 5% within 24 hours reflecting the increased confidence in Bitcoin as law is solidified regarding crypto trade in Korea.
To conclude, the new ruling marks the end of a era as traders will now be forced to identify themselves to the state and exchange in order to trade. Larger amounts of trade will also be arbitrarily investigated as the Korean government reiterated the fact it suspected crypto as being one of the main mediums for money laundering operations around the nation.