South Korea has decided to prohibit the usage of anonymous bank accounts in cryptocurrency transactions.
The decision is set to be implemented from 30 January, this year.
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By GlobalDataUnder the new regulations, the cryptocurrency traders can deposit into their virtual currency exchange wallets only when the names on their bank accounts and cryptocurrency exchange matches.
The regulations also prevent foreigners residing outside South Korea with no local bank accounts and minors from carrying out cryptocurrency transactions.
The regulator, Financial Services Commission, is also expected to publish detailed guidelines for the local banks to properly identify its customers by their real names in order to authorise them in conducting cryptocurrency transactions.
The new measures are expected to discourage the usage of virtual coins in money laundering, tax evasion and other crimes.
Last week, the country’s chief financial regulator stated that the government is mulling to close domestic virtual currency exchanges in an attempt to curb cryptocurrency deals.
The Presidential office also noted that a complete ban on trading on the virtual currency exchanges is also under consideration.
In South Korea, cryptocurrency trading is generally popular among the young population. The country also hosts some of the largest cryptocurrency exchanges.
