South Korean banks will limit the service users of the cryptocurrency exchanges that did not identify their identity at the request of financial regulators of the country. It is reported Bitcoin.com citing local media.
In January, the South Korean authorities tightened the rules for trade digital currencies on local exchanges, obliging the user platforms to identify your identity using your Bank account.
A trader needs to open a Bank account, collaborating with the stock exchange in the framework of the so-called “real-name system” (real-name system). In the event of failure of the claim, the traders can only withdraw funds from their accounts and lose the opportunity to contribute to the accounts of the Korean won.
However, after more than seven months only four major platform of the country — Upbit, Bithumb, Coinone and Korbit — offered his services to convert accounts verified accounts.
Currently, about 40-50% of the users of these exchanges complied with the January request of the authorities. In addition, most traders continue to trade in the cryptocurrency at the expense of funds deposited for exchange prior to the tightening of trade rules.
In turn, some exchanges have adopted a number of measures to stimulate the transition of traders on verified accounts. In particular, Bithumb reduced by 10% the daily limit of withdrawals for users with unconfirmed accounts, and Upbit in August distributed to traders that meet the requirements about 100 million Korean won ($88 thousand).
So far, banks cooperate only with four exchanges of the country. For example, Bithumb has an agreement with Nonghyup Bank. Recently the financial institution promised to strengthen measures to combat unverified users of the exchanges.
How to write the local newspaper, the banks plan to limit the service and to impose restrictions on Deposit and withdrawal of funds in Korean won, if traders will not create a new verified account by a certain date.
ForkLog previously reported that the South Korean authorities plan to relax efforts to market regulation of cryptocurrency in accordance with the recommendations of the group of participating countries “Big twenty” (G20).