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Cryptocurrency usage to be banned in South Korea for controlling crimes

Jan 23, 2018, 6:00 am

Today, January 23, South Korean regulators announced that the nation is going to ban the usage of anonymous bank accounts for trading in cryptocurrency or virtual coins, effective from January 30. This is a widespread telegraphed move across the country for controlling crimes like money laundering.

The global policymakers previously warned people not to invest in any asset without broad regulatory supervision. But South Koreans, starting from housewives to office workers and even college students went on for trading, which ultimately led to an ‘obsession.’

As of 4:09 GMT, the bitcoin price in the country stooped down 3.34% at $12,699, in the aftermath of the latest announcement. This was reported by Bithumb, the second-largest virtual currency exchange of the country.

Furthermore, last week saw about 20% slip of the price that’s a four-week low on the Bitstamp exchange for the the-then possible ban hanging over the heads of the traders. The Tuesday afternoon trade showed a 5.4% lift at $10,925.

The global policymakers are indeed on a course to make things stricter and calling for more coordinated regulations over the virtual asset trading.

That the government may consider shutting down domestic virtual currency exchanges. – Chief Financial regulator of South Korea

This was echoed in the statement from the Presidential office as well, which stated that the latest virtual coin ban is only a part of the larger measures that are being considered.

The past month saw debates between the Justice Ministry and the regulators regarding stiffening the rules. While the former has been looking for a more firm hold on things, the latter has come up with reluctance, even for the outright ban.

Finally, they could find a common ground to put the cryptocurrency ban in effect during the month-end. Therefore, as S Korea bans cryptocurrency starting January 30, South Korea-based cryptocurrency traders are not allowed to make deposits into their virtual wallets given that the names of the respective bank accounts match the same in cryptocurrency exchange. This was clearly stated in a Seoul news conference by Kim Yong-Beom, the Vice Chairman of the Financial Services Commission.

Everyone knew this was coming, as the government already said they will enforce the real-name system before. Rather, I can see this as a chance to go in, not out. I don’t see any reason to take my money out. – Bitcoin investor

The investor wanted to keep his identity hidden but agreed to be identified by family name Ahn.

Previously, it was said by the regulator that detailed guidelines are coming for the local banks in order to carry out proper identifications of the clients by real names in cryptocurrency transactions. Accordingly, it is required by the traders to identify themselves by real names at the exchange, which must match the information at the local banks, starting January 30.

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