Six Korean Banks To Start Requiring Real Names of Crypto Investors on January 30
South Korea is set to require real names for deposits and withdrawals involving cryptocurrency starting on the 30th of this month. Six banks have said they will comply with the stricter measures.
Because this is breaking news, this page is still undergoing editorial revision. The gist is that the days of freewheeling cryptocurrency trading in South Korea are definitely over. No more juveniles, no more foreigners, no more skirting of taxes, no more money laundering via the SK crypto exchanges.
According to the financial authorities on the 23rd (Tuesday morning in Asia), six banks including Nonghyup Bank and Shinhan Bank will be implementing the real-name system at the same time.
“The six banks are planning to open the system at the same time,” said an official from the banks and virtual currency exchanges.
Banks that have agreements with the following cryptocurrency exchanges:
Industry Bank – Upbit
Nonghyup – Bithumb, Coinone
Shinhan – Bithumb, Eyalabs, Korbit
The other three banks — Gwangju, Kookmin and Hana — have no existing relationships with cryptocurrency exchanges.
Confirmation of real-name deposit and withdrawal service is a service that permits only the account of the trader whose identity is confirmed and the deposit and withdrawal between the same bank account of the exchange. If the exchange and the trader’s account are in different banks, the trader must open a bank account like the exchange.
A trader must go to a bank branch in person to open a bank account at another bank and check his / her name. During this process, you must present proof of your real name, such as your resident registration card or driver’s license.
Confirmation of real name, when the deposit and withdrawal system is implemented, it is possible to compare the resident registration number in addition to the name and the account number of the trader, thereby affecting the establishment of a juvenile or non-resident foreigner in the market.
It also creates basic data for imposing transaction tax or transfer income tax related to virtual currency transactions and makes it possible to set additional transaction limit per capita in the future.
Once the real-name deposit / withdrawal system is implemented, previously disallowed new investments will be allowed.
Financial Supervisory Service (FSS) and other agencies expected to apply guidelines for anti-money laundering related to the virtual currency of exchanges through banks that are obliged to prevent money laundering under current law.
Banks plan to apply enhanced Enhanced Due Diligence (EDD) to traders through preferred exchanges. The EDD is a way to include the customer’s name (name and resident registration number), address and contact details, residence, financial transaction purpose and source of fund.
The committee also decided to check whether the exchange strictly separates corporate funds and customer funds, and maintains records of users, such as keeping records of transactions.