It has been more than seven months since the South Korean government introduced the need to verify a real name to use a crypto exchange. Investors who have linked their accounts to a real name can deposit Korean won into their accounts, while those who have not done so can only withdraw them.
The government intends to continue to use a similar system. However, in fact, only four exchangers in the country - Upbit, Bithumb, Coinone, Korbit - were able to offer their clients to link their personal data to their account.
According to a September 10 Money Today report:
“Although the name verification service has been operating for more than six months since its inception, the number of accounts with verified personal data on each exchange does not exceed 40-50% of all accounts.”
To convert an existing account into a verified account, a trader must open an account with a bank that has an agreement with the exchange to exchange real names. For example, Bithumb has an agreement with Nonghyup Bank. At the moment, banks only provide such services to the country's top exchangers.
Banks will limit the list of services to unverified accounts
A representative of one of the banks told the publication that customers who use unverified accounts may often want this because of the convenience of money laundering using cryptocurrencies. Banks are now requiring exchanges to contact their users who have not yet switched to new accounts and ask for their real names. According to the banking industry, “such a system of operation will increase the transparency of cryptocurrency transactions, and will also help prevent cases of money laundering.”
Banks will limit the list of services for those customers who do not switch to verified accounts by a certain date. The Money Today publication also stated: “It is expected that restrictions for such users will be introduced as early as November.”
Some of the exchangers have already begun to introduce some restrictions. The only difference is their approach. Bithumb, for example, has reduced the daily Korean won withdrawal limit by 10% for unverified accounts. According to the publication, the exchanger does not plan to stop there and will introduce additional measures for those who have not yet linked their real name to the account.
Upbit exchanger, on the contrary, distributed 100 million won ($88,615) to hundreds of users who identified their accounts in a certain period of time.
According to news.bitcoin.com
You May Also Like
Robinhood launches traditional banking services
Robinhood has decided to provide a new service to its American users - the ability to open a checking or savings account. According to the company's announcement, it will pay 3% on deposits to any type of account.
Opinion: banks have 5 years left to live
The era of monopoly banks is coming to an end, says the executive director of the Swedish bank Klarna. Amid competition from fintech challengers, banks will face massive customer loss and disruption over the next five years.
