South Korean Exchanges Launch New Rules as Gov’t Curbs Crypto Market

South Korean Exchanges Launch New Rules as Gov’t Curbs Crypto Market

The crypto exchanges which function in South Korea, have exercised some alterations to obey country’s authorities cryptocurrency regulations. Meanwhile, the South Korean government announced that it’s going to prohibit the anonymous cryptocurrency trading since the middle of January, according to Yonhap.

Among the changes that Korean exchanges have had to implement are the restriction of some users from purchasing and vending digital coins and the issuance of novel virtual accounts. Such regulations were earlier announced by the country’s government in order to take control over the increase in popularity crypto market.

New Strict Realities for Crypto Exchanges

There are several South Korean crypto exchanges which steal the show all the time. Among them, there are Coinone, Bithumb, Korbit and Upbit. The last one, by the way, is being supported by the Kakao Corporation which possesses Korea’s most significant chatting application named Kakao Talk. Meanwhile, Bithumb is considered to be the oldest among the Korean exchanges, whereas Upbit is a new player.

These four companies were among the first exchanges which started following the government’s restrictions. Since now, they cannot provide minors and foreigners with their services. Furthermore, they should forget about creating new virtual accounts. Previously, the accounts were created for exchanges by banks, and, later, appointed to exchanges’ clients for anonymous KRW operations.

The primary exchange to exclude those under 19 years old from using the crypto services was Upbit. The exchange prohibited them to withdraw the money, so they had to finish doing that by the ending of the previous month before they were banned from subscribing to the platform. Since January 1 the same rules apply for minors on Bithumb.

Also, exchanges explained to its clients that novel virtual accounts wouldn’t be created anymore due to the authorities’ policy for the real-name system. Most of the services connected with the issuance of new accounts have been suspended on December 29 or at least before the New Year or on January 1.

Upbit and Korbit informed that those customers, who managed to create accounts before the restricting deadline with the help of Shinhan Bank, would be able to enjoy services with no troubles. However, Korbit cannot guarantee that there will not be any other regulatory influence on those people who own virtual accounts.

Ban for Anonyms

Sources from the financial establishments of South Korea have informed that the country’s government is working on a system that will forbid the use of anonymous accounts in crypto operations since the middle of January, around the 20th.

This regulation will also be a part of the government’s gauges to hold back crypto transactions. Earlier, the government claimed that they, perhaps, would even close the crypto exchanges. According to the new-coming rules, only matching accounts at crypto exchanges and real-name bank accounts can be utilized for crypto transactions. At the same time, there is supposed to be no virtual accounts anymore in South Korea.

Such measures have been taken in order to prevent the burst of the crypto exchanges bubble, which the South Korean government is concerned of.