Seven months ago, the government in Korea brought in a new ‘crypto real-name system’ however, there is only up to 50% of accounts that have been converted into real-name ones, even in the top four cryptocurrency exchanges for Korea. South Korean banks are taking action against customers which don’t use the real name system, which will limit their services.
As aforementioned, it has been seven months since the government brought in the real name system for crypto exchanges in South Korea. Investors who haven’t converted their digital crypto accounts into real name ones which are verified won’t be able to deposit the traditional Korean Won currency into their accounts. However, they will be able to withdraw the Korean Won.
The South Korean government expects for all the crypto exchanges in the country to use the real-name system. However, only the four largest exchanges in the country, Bithumb, Korbit, Coinone and Upbit has been able to offer the conversion service to their clients.
“Although the name verification service has been in operation more than half a year since its inception, the conversion rate to the real-name verified accounts for each exchange site is only 40 to 50%.”
To convert an account into a real-name one, the investor must first open an account at the bank which has a real-name conversion agreement with the exchange.
Under the real-name system, client deposits at exchanges are couples with their information on their bank accounts.
“Many investors do not convert to a real-name verified account but invest only with the funds that they have already deposited at crypto exchanges.”
Said Money Today on Monday.
Officials from banks have told new outlets that those who continue to use virtual crypto accounts are at higher risks of money laundering, compared to those who use the real-name ones. They also added that banks will now take measures to increase the conversion rate.
“Banks will take measures to limit services unless the customers with virtual accounts switch to real-name verified accounts by a certain date. After a certain point in time, if new real-name verified accounts are not issued some restrictions on the Korean Won deposit/withdrawal will be considered.
It’s expected that restrictions will be imposed as early as November.”
Said the news outlet.
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