The crypto currency traders in South Korea will no longer be trading anonymously. The government has banned all anonymous crypto currency trading. During last week major crypto currency exchanges in South Korea such as Korbit and Bithumb indicated that they will no longer be accepting anonymous traders on their exchanges. Korbit exchange specifically indicated that non Korean users will not be allowed to deposit Korean Won (KRW) at any crypto currency exchange in Korea. This is intended to make the exchange compliant with the anti money laundering laws and know your customer requirements regulations that are being enforced by Korean government.
The largest bank in South Korea, Kookmin Bank has also stopped providing virtual bank accounts to crypto currency exchanges. Traders in South Korea usually have virtual bank accounts which they use to withdrawal their Korean won from crypto currency exchanges before withdrawing to their own actual bank accounts. Despite this more banks have started to support cryptocurrencies by allowing exchanges to have local bank accounts.
The South Korean justice minister Park Sang-gi, has received a lot of criticism for issuing a statement in December indicating the country’s intention to regulate cryptocurrencies. The statement was taken to imply that South Korea was going to ban cryptocurrencies which led to decline in the price of Bitcoin and other cryptocurrencies. The regulations have been welcomed by some people while others have indicated that over regulation is likely to hamper the growth of cryptocurrencies in the country.
In addition, the KYC and AML regulations it is expected that the exchanges will be sending inflation to the tax authorities concerning crypto currency trades that exceed unspecified amounts. It is expected that more comprehensive regulations on taxation of crypto currencies in South Korea will be released for implementation before the end of this year. South Korea is one of the major crypto currency markets in Asia and most of the people in the country have small explore to crypto assets. The regulations are expected to legitimise crypto assets in the country.
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