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Korean Crypto Exchanges to Share Data with Banks in New Account System This Month

The South Korean government has announced that six major banks will be ready to provide services to cryptocurrency exchanges this month. Under the new system, the government requires exchanges to share user data with banks.

Also read: South Korean Officials Caught Trading On Insider Knowledge of Crypto Regulations

Exchanges to Share Data with Banks

The Korean Financial Services Commission (FSC) announced some additional details of the new real-name system for cryptocurrency accounts on Sunday. “The government plans to require cryptocurrency exchanges to share users’ transaction data with banks,” an FSC official said, as quoted by the Investor. The official emphasized:

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.

Korean Crypto Exchanges to Share Data with Banks in New Account System This MonthThe new system will end the current practice of virtual account usage which allows anonymous trading of cryptocurrencies. These accounts are issued by banks for crypto exchanges’ customers to use to buy or sell cryptocurrencies at exchanges.

The regulators have banned financial institutions from issuing new virtual accounts until the new system is in place to ensure that “only real-name bank accounts and matching accounts at cryptocurrency exchanges” can be used for deposits and withdrawals, the news outlet described.

6 Banks to Introduce New System on January 30

The FSC’s announcement stated that 6 commercial banks including Nonghyup Bank, Industrial Bank of Korea, KB Kookmin Bank, and Shinhan Bank will have the new system in place from January 30, according to the Digital Times. Initially, the system was expected to be implemented Read More Here