South Korean Banks And Cryptocurrency Exchanges To Share Data

While trying to impose taxes on the transactions with respect to virtual money, the South Korean government has declared that from this month, six noteworthy banks will give services to digital currency trades. This new system requires the trades to share user information with banks.

On Sunday, the FSC or Korean Financial Services Commission reported a couple of insights in regards to the new real name system. A FSC official announced that the digital currency exchanges need to share their users’ transaction information with the banks.

In the announcement, the official additionally said that:

“Banks are expected to introduce the system, which will require cryptocurrency exchanges to share users‘ transaction data with banks, late this month or early next month.”

Starting at now, the financial authorities have prohibited banks from offering virtual accounts alongside opening the anonymous digital currency accounts as a potential move to keep the theoretical investment for virtual coins.

As a feature of the digital currency trading clampdown, the new system will end the present practice with regards to unknown digital currency trading. The restriction on the financial institutions to issue new virtual account is keeping in mind the end goal to guarantee that exclusive the individuals who have real name bank accounts and coordinating accounts at digital currency trades can be utilized for deposits and withdrawals.

Before the current month’s over or one month from now, it is anticipated the banks will present this system where the digital currency trades are required by the govt. to share the users’ transaction information with banks.

According to the declaration of FSC, the 6 noteworthy commercial banks incorporate the Industrial Bank of Korea, Shinhan Bank, Nonghyup Bank and KB Kookmin Bank. These banks will have the new system set up from January 30, however at first it was required to be actualized by January 20.

As per a media source, a FSC official elucidated:

“Six commercial banks that have supported virtual currency transactions will establish a deposit and withdrawal system to convert [to] the virtual money real-name system and provide full-fledged services from the 30th.”

Be that as it may, the opening of new accounts will in any case be suspended as the new service focuses on the current virtual account users.

Besides, FIU or Financial Intelligence Unit is setting up the rules for anti-money laundering in regard to digital currencies.

As per a media source, it has additionally been included that:

“As the government is able to access virtual currency transaction information, it will speed up taxation based on this information.”

This new system will be AML complaint as it has been normal that this system will block money laundering unlawful funds and filter out minors that are precluded to invest into virtual money.


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