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

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

South Korean banks are reportedly taking measures to limit services for customers who are not using the real-name system. It has been over seven months since the Korean government introduced the crypto real-name system, but only 40-50% of accounts at the country’s top four cryptocurrency exchanges have been converted into real-name ones, according to local media.

Also read: 160 Crypto Exchanges Seek to Enter Japanese Market, Regulator Reveals

The government intends for all crypto exchanges to use the real-name system. However, in reality, only the country’s largest four crypto exchanges – Upbit, Bithumb, Coinone, and Korbit – have been able to offer the conversion service to their customers.

Money Today reported on Monday, September 10:

Under the real-name system, customer deposits at crypto exchanges are matched with information on their bank accounts.

However, the news outlet explained that “many investors do not convert to a real-name verified account but invest only with the funds they have already deposited [at crypto exchanges].”

According to the banking industry, banks are demanding that crypto exchanges with real-name conversion service ask their users who have not converted their accounts to do so. Noting that it is banks’ policies “to increase the transparency of virtual currency transactions and, above all, to prevent money laundering,” the news outlet elaborated:

The publication added that “It is expected that restrictions will be imposed as early as November.”

The Kakao-backed exchange Upbit has also been encouraging its users to convert to real-name verified accounts. The exchange held an event last month to give away a total of 100 million won (~US$88,615) to 100 users who converted during a specified period of time.

What do you think of banks taking measures to compel customers to convert their accounts to real-name ones? Let us know in the comments section below.

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The post Korean Banks to Limit Services for Crypto Traders Without Real-Name Verification appeared first on Bitcoin News.

 

source: https://news.bitcoin.com/korean-banks-crypto-real-name-verification/

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