With the increasing trend of cryptocurrency in the world market today, different countries has already set a measures to protect and regulate the phenomenal market asset.
And now, South Korea will barred the use of anonymous bank accounts in cryptocurrency trading from Jan. 30, regulators announced.
The move is a widely telegraphed way designed to stop virtual coins from being used for money laundering and other crimes.
The ban amid the stepped up efforts by Seoul to temper South Koreans’ obsession with cryptocurrencies.
Many people rushed to trade the market despite warnings from global policymakers about investing in an asset that lacks broad regulatory oversight, because of the social hype in the internet.
According to Bithumb, the bitcoin price in South Korea extended loss following the latest regulatory announcement, down 3.34 percent at $12,699 as of 0409 GMT, the country’s second-largest virtual currency exchange.
Bitcoin BTC=BTSP slumped nearly 20 percent last week to a four-week low on the Luxembourg-based Bitstamp exchange, pressured by worries over a possible ban on trading the virtual asset in South Korean exchanges.
In fact last Tuesday afternoon trade, it was up 5.4 percent at $10,925.
Policy makers around the world are calling for tougher, coordinated regulation of cryptocurrency trading. South Korea’s chief financial regulator last week said the government may consider shutting down domestic virtual currency exchanges.
South Korea’s Presidential office has clarified that an outright ban on trading on the virtual currency exchanges is only one of the steps being considered, and not a measure that has been finalized.
“The government is still discussing whether an outright ban is needed or not, internally,” a government official who declined to be named said after Tuesday’s briefing.
South Korea’s Vice chairman of the Financial Services Commission Kim Yong-beom announced that starting Jan. 30, cryptocurrency traders in the country will not be allowed to make deposits into their virtual currency exchange wallets unless the names on their bank accounts matches the account name in cryptocurrency exchanges.
The regulator has previously said it will come up with detailed guidelines for local banks to properly identify its clients by their real names in cryptocurrency transactions.