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South Korean Banks to Limit Services to Crypto Investors Using Virtual Names

September 11, 2018 14:46
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South Korean banks are taking steps to limit services to customers who are not using their real names to operate their accounts.

Seven months ago, the Korean government had introduced the crypto real-name system, but so far very few customers have updated their bank records, accordingly. According to the latest diktat, investors who have not converted their virtual crypto accounts, into real name verified accounts cannot deposit Korean won in their accounts. They will only be eligible to withdraw it.

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Although this mandate has been introduced for all cryptocurrency exchanges in South Korea, only four exchanges have offered the conversion system for their investors. The four include- Upbit, Coinone, Bithumb and Korbit. A news portal Money Today reported on Monday stating, “Although the name verification service has been in operation [for] more than half a year since its inception, the conversion rate to the real-name verified accounts for each exchange site is only 40 to 50%.”

Earlier it was reported that cryptocurrency exchange Bithumb had renewed its contract with Nonghyup Bank, after the former agreed to offer the ‘real name virtual account issuance verification service.’

At the time, there was a slight disagreement between the exchange and the bank, which is why it took longer time to renew the contract between the two parties. The issuance of the new real name confirmation virtual account had been stopped temporarily  but when the new contract kicks into place , Bithumb will issue the virtual name confirmation account with the bank, Crypto-News India had reported.

Under the real-name system, a customer deposits Korean won (fiat) at crypto exchanges, which verify the identity of the investor at the respective bank account.

Commenting on the development, a bank official had told Money Today that investors who continue to use virtual crypto accounts and not real name accounts are at higher risks of money laundering.

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