South Korea will be fined anonymous traders

South Korea will be fined anonymous traders

South Korean officials said Sunday that cryptocurrency investors should abandon the use of anonymous virtual accounts, otherwise they face a fine.

As reported by local publication Yonhap News investors and traders who now use of anonymous accounts will have the ability to go on the account tied to their personal data until the end of January, but if this is not done they will be fined.

The amount of the fine has not been determined.

Simultaneously, South Korean banks have had to introduce a system of identification of holders of anonymous accounts, especially accounts in the cryptocurrency. However, to avoid potential problems, many Korean banks simply stopped working with cryptocurrency companies

For example, one of the country’s largest banks, Shinban Bank said that despite the fact that they have a functioning system of identification of users accounts in virtual currencies, however, they cease to service such accounts.

We have developed a system to implement the identification of the clients-owners of [foreign exchange] accounts in line with new government rules. However, we decided to abandon provision of these services completely, after it became a serious social problem.

Meanwhile, pressure from the public and the opposition forced the government to declare that despite the increased pressure on cryptocurrency businesses, the government has no plans to ban the activities of cryptocurrency exchanges.

This morning the office for the coordination of state policy made a statement, which noted that:

The proposed closure of cryptocurrency exchanges and exchangers, which recently was mentioned by the Minister of justice, is one of the measures proposed by the justice Ministry to curb speculation. The government’s decision will be made in the future after various consultations.

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