South Korea now coerces citizens to identify themselves for handelsbank transactions and prevents foreigners from crypto currency trading. It may lose its first-mover advantage.
Real-name registration system ter place
It wasgoed reported on 30 January that a real-name registration system for crypto currency trading offically went into effect ter South Korea. Its 6 major banks, including Shinhan Bankgebouw, Nonghyup Handelsbank, the Industrial Bankgebouw of Korea, KB Kookmin Canap, KEB Hana Handelsbank and Gwangju Canap, would install the real-name system for investors and close all existing cryptocurrency accounts. It is devised to enforce a real-name system for aparente currency trading and regulate banks and exchanges te order to curb money laundering and speculation.
According to the fresh policy, all exchanges vereiste only permit potencial currency transactions inbetween real-name canap accounts and matching crypto-exchange accounts. Foreign nationals are excluded from the market whether they are residents or not. Foreigners living outside South Korea without a regional handelsbank account, along with minors under Nineteen, are banned from buying or selling digital currencies including bitcoin.
Ter addition, banks have the right to reject to open accounts for cryptocurrency exchanges that are unwilling to disclose information about suspicious trading. They are able to profesor individual and corporate accounts with large transactions and report suspicious activities to the authorities.
Locorregional cryptocurrency exchanges, including Bithumb, Coinone, Upbit, Coinnest, Korbit and Coinplug, also displays pop-up windows to inform users of completing real-name registration or re-opening a real-name account.
Kim Yong-beom, vice chairman of the Financial Services Commission (FSC), broke the news to the press on 23 January. &ldquo,No one, including the government, can endorse the value of digital currency,&rdquo, Kim said, &ldquo,The volatile nature of digital currency requires tremendous caution for investment decisions.&rdquo,
The South Korean government previously suggested banning anonymous trading te digital currency entirely to crack down speculation and potential crimes, and to prevent cryptocurrency from being used te money laundering, tax evasion and other illegal activities.
Obligations of cryptocurrency exchanges
Under the state regulator FSC, South Korea&rsquo,s Financial Supervisory Service (FSS) and Financial Intelligence Unit (FIU) investigated the 6 major banks before the fresh regulation wasgoed announced. Results indicated that many platforms treated funds from users via their corporate account, &ldquo,and what&rsquo,s more, Four trading platforms has illegally treated KRW58.6 billion using their corporate account directly.&rdquo,
Therefore, the FSC published obligations for trading platforms who are required to report to FIU and relevant authorities regarding the following suspicious transactions:
1. A user makes deposits or withdrawals of more than KRW10 million vanaf day,
Two. A user makes deposits or withdrawals of more than KRW20 million vanaf week,
Three. A user makes deposits or withdrawals more than Five times vanaf day or trades frequently te a brief time,
Four. A cryptocurrency exchange fails to provide their investors&rsquo, (users&rsquo,) ID information,
Five. A company or an organization deposits or withdraws their money from canap accounts to trade cryptocurrencies,
6. A toneelpodium continuously remit funds to its managers and employees.
Since the fresh rules came into place, 66 members of the Korea Blockchain Industry Association have voiced support for implementation. However, bitcoin price plunged on Bithumb, South Korea&rsquo,s 2nd largest cryptocurrency exchange, on the day of announcement.
Bloomberg refers to it spil a &ldquo,estupendo begin to &rdquo, for South Korea&rsquo,s imaginario currency market. The so-called kimchi premium is disappearing, spil bitcoin has dropped spil much spil 60%, 51% more than the slump te the entero market since the middle of January, signaling the beginning of a crypto winter ter South Korea.
Currency value determined by numerous factors
Based on CoinMarketCap.com gegevens, it is estimated that the current value of entire imaginario currency market amounts to approximately JPY46608.6 billion (about $423.368 billion), back to the level te the middle of last December.
Latest news ter the crypto market influences the price te addition to South Korea&rsquo,s real-name system.
According to CoinMarketCap, the value of imaginario currency tumbled at around Ten:30am on Two February , down about 10-30% within 24 hours.
The article is published with authorization from the author 链得得 ChainDD please note source and hyperlink when reproduce. Translated by JoyceChan, working for TMTpost.