The South Korean government has been working to end anonymous cryptocurrency trading in the country.
Last month, the government announced plans to curb speculation in cryptocurrency trading. The measures to be undertaken by the government include a ban on opening anonymous digital currency accounts and legislation that will enable regulators to close cryptocurrency exchanges if required.
According to a latest report from Yonhap News Agency, the government is developing a system that is expected to end the use of anonymous accounts in cryptocurrency transactions. Industry sources told the local media outlet that the system is expected to go into effect around January 20.
With this, people with real-name bank accounts and matching accounts at digital currency exchanges would be able to make deposits and withdrawals. In addition to the ban on anonymous cryptocurrency trade, there will be a ban on the issuance of new virtual accounts to cryptocurrency exchanges.
The sources also said that people would be allowed to withdraw money from their real-name cryptocurrency accounts via another bank, which making deposits into such accounts via another bank will be banned.
The measures are aimed at encouraging cryptocurrency investors to create real-name accounts and limit speculation in this area. The government also seeks to strengthen requirements of domestic exchanges to prevent financial crimes.
