According to the new rules for the operation of crypto-currency trading in South Korea, all participating operators must be authorized. However, a week after the introduction of the rules, only 8.21% of all crypto-virtual accounts in South Korea were tied to real names, the local report said.
Six large South Korean banks have already put in place an authorization system. However, only three of them provide services for converting accounts of crypto-exchange exchanges: these are Industrial Bank of Korea (IBK), Nonghyup Bank and Shinhan Bank.
According to the authorities, current virtual accounts should be converted into real ones so that traders can transfer money from them to cryptotrading. This new system allows banks to verify the identity of clients and fulfill their obligations to combat money laundering.
However, the Yonhap report states that “the total number of accounts that these three banks must convert to a real name system is a total of 1,745,000.
It is reported that under-age citizens and foreigners are prohibited from opening virtual accounts.