As the crypto frenzy took over the world, South Korean society went crazy over it. This attracted the attention of the government to this unregulated sector, and now the authorities are trying hard to end the hype by tightening regulations.
Recently, Korean news agency Yonhap reported that the South Korean government is working on the development of a system which is likely to ban anonymous cryptocurrency accounts from around the 20th January.
This news surfaced after the South Korean authorities announced a new set of restrictive measures to curb crypto transactions last week. The government also indicated that there is a possibility that it will close down cryptocurrency exchanges if necessary.
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According to the new rules, the real name of a user has to be associated with any account performing a cryptocurrency transaction. Similar to any other financial instrument or portfolio, proper identification and security procedures are put in place, ultimately regulating the market and protecting its participants. These measures are put in place to ensure the legitimacy of the crypto trading.
According to Yonhap News, the authorities will still allow people to withdraw money from their real-name cryptocurrency accounts via another bank, but putting money into such accounts via another bank will be completely banned.
The cryptocurrency currency fever has dug deep into the peninsular nation’s society. As per many reports, over a million South Korean citizens are engaged in crypto trading. Also, market data shows that small time investors prefer to invest in cryptocurrencies rather than the traditional stock market, as reported by Finance Magnates. This will eventually hit the mainstream economy of the country.
South Korea is also the home of some of the biggest crypto exchanges in the world. The country’s government is continuously studying the feasibility of regulating this growing unregulated sector to prevent speculative bubbles.
Earlier this month, the Korea Communications Commission issued a fine to a cryptocurrency exchange due to a lack of proper security measures with regard to user information. The turmoil in South Korea surrounding the cryptocurrency market appears to be intensifying.