The Korean currency exchange Coinpia announced that it will suspend trade and create deposits until it can introduce a customer identification system in accordance with the law recently passed by the government, writes Coindesk .
According to an announcement published on Tuesday on the platform’s home page , the service suspended deposits in the Korean will on January 30 in an attempt to comply with a new regulation imposed by the South Korean Financial Service Commission.
On January 23, the Financial Services Commission of South Korea announced that starting from February, traders will have to use their real names and associated bank accounts if they want to continue to participate in the bidding.
The exchange informs that it has difficulties with the integration of the user identification system, which forced the company to make a decision on introducing its own restrictions.
Coinpia turned out to be one of the eight crypto-currencies exchanges recently fined by the South Korean Communications Commission for using ineffective data protection systems for users.
According to Bitcoin.com, the problem is much more ambitious. Of the six banks working with stock exchanges in South Korea, only three decided to provide trading floors with bills that meet new requirements. Thus, out of 25 exchanges, only four were able to convert to accounts linked to real traders’ names. The rest presumably continue to ignore the demands of the government.
“New accounts are issued only to those exchanges that meet certain requirements. If they do not correspond to them, they may be denied installation of the user identification system, “the Yonhap news portal reports.
Shinhan Bank, which serves the largest exchange of the country Bithumb, also decided not yet to issue new accounts, taking into account the fact that Bithumb is currently investigating the last year’s hacking.