Korean Banks to Limit Services for Crypto Traders Without Real-Name Verification

 

According to local news portals, South Korean banks are implementing new measures for crypto traders. Reportedly, they are going to limit the services offered to cryptocurrency traders and investors without identity verification.

This measure comes after 40-50 percent of the crypto traders with accounts registered with the top fours cryptocurrency exchange platforms across South Korea did not change their names into real ones. Over seven months ago, the South Korean government implemented the “crypto real-names system” for the country’s cryptocurrency exchange platforms. This regulation demanded all the crypto traders with accounts created using nicknames or fake names to add their real names as part of the identity verification process.

The measure meant to reduce the risks of illegal activities or money laundering with cryptocurrencies. Without identity verification process completed, crypto traders cannot deposit Korea Won in their accounts, but they are allowed to withdraw their already-existing funds to a bank account.

To convert an existing virtual account into a real-name verified one, the trader must open an account at the bank which has a real-name conversion agreement with the exchange. For example, Bithumb has an agreement with Nonghyup Bank. So far, banks have been providing this service to only the country’s top four exchanges. Under the real-name system, customer deposits at crypto exchanges are matched with information on their bank accounts.

 

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