Cryptocurrency in South Korea: Earlier this month, South Korean Government was ready to pass the bill on banning cryptocurrency trading. Followed by Chinese also came forward to ban cryptocurrency trading. But today on Tuesday, January 30, South Korea has announced a real-name trading for cryptocurrencies. It is that from January 30, it is allowed to trade only from real-name bank accounts in cryptocurrencies.
According to Financial Services Commission, it is mainly intended to reduce room for cryptocurrency transactions to be exploited for illegal activities, such as crimes, money laundering, and tax evasion. The implementation of those new rules came after mixed messages about regulation from South Korean officials at various ministries earlier this month. After this, it is expected to have a short-term downside in the crypto market but later it will become long-term big boost.
New Rules on Crypto Trading
In South Korea, it is estimated that more than 3 million people have invested in cryptocurrencies and the national banks of South Korea have started verifying cryptocurrency investors identities. Earlier there was a ban on opening cryptocurrency accounts in banks but now it ensures only real-name bank accounts and matching accounts at cryptocurrency exchanges for deposits and withdrawals.
Also, foreigners and underage investors are banned from opening cryptocurrency accounts in South Korea. The cryptocurrencies Bitcoin and Ethereum are the most popular among South Korean investors. It is also expected that the prices of crypto coins will regain and recover when banks allow opening of new cryptocurrency accounts.