Real Names Required for Crypto Exchanges
The South Korean government has not banned bitcoin trading or exchanges. Instead, the government will only allow accounts with the user’s real name for cryptocurrency transactions. When buying or selling cryptocurrency in Korea, traders need a Korean bank account. With a Korean bank account, they can withdraw funds into real cash. Starting January 30th, traders of cryptocurrencies will need to use real names. So if the trader’s name does not match their exchange wallet and their bank account then they can not withdraw or make deposits. The South Korean Government seems to be using this method to track transactions for tax purposes.
The South Korean Government will bring out more regulations in order to crack down on cryptocurrency, especially bitcoin. Over the last few days, the prices for not only bitcoin but all cryptocurrencies went down and many investors pulled out of cryptocurrencies. Bitcoin which was once over $20,000 late last year went under $10,000 and ethereum went below $1,000. Expect more ups and downs and news regarding regulation trickles down from the Korean government.
More and more companies not just in Korea but also in the United States are looking into blockchain technologies and buying cryptocurrency data platforms to increase their stock. As regulations hit Korea, more and more companies are looking elsewhere to set up bitcoin exchange platforms. All this regulation is causing businesses in this new and innovative tech industry to leave Korea. Innovation in blockchain and ICO will happen in other parts of the world as South Korea gets left behind.