After the introduction of new rules regarding the functioning of crypto exchanges in South Korea, all exchange players are required to log in. Despite this, only 8.21% of all accounts are currently linked to real names.
The authorization system has already been introduced in the six largest banks in South Korea. But only three of them service the conversion of cryptocurrency exchange accounts: Industrial Bank of Korea (IBK), Nonghyup Bank and Shinhan Bank.
The country's authorities believe that all current open exchange accounts should be de-anonymized so that traders can transfer money to cryptocurrency exchanges. The new system will help improve the operating conditions of the cryptocurrency market, since banks have the opportunity to verify the identity of the trader and 100% fulfill their obligations aimed at combating money laundering.
According to the Yonhap report, at the moment, the accounts that must be transferred to real ones by these three banks amount to 1,745,000. Within a week after the new regulations came into force, only 143,330 were authorized. The total number of virtual accounts that require authorization is about 1.6 million, but only 10% of them have been converted into real ones at the moment, authorities note.
Authorities also believe that authorization is proceeding slowly because investors do not need to undergo it if they no longer intend to buy cryptocurrency for fiat.
It is also noted that citizens under the age of majority, as well as clients from other countries, cannot open cryptocurrency accounts.
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