South Korea come into force new rules of wrestling with the anonymity of cryptocurrency traders and the banking organizations have to comply with the new burdensome compliance exchanges, conducting operations with cryptocurrency. Now they are even more critical in the evaluation of account activity that raises suspicion of the local cryptocurrency companies.
Exchange Coinpia announced that it was suspending trading and Deposit taking after are unable to integrate the system of customer identification in accordance with the new requirements of the government.
Financial Supervisory service of Korea has recently tested the first six South Korean banks for compliance with new requirements for Bank account transfers of cryptocurrency exchanges. Customs service Korea also said that 600 million dollars associated with illegal activity, was found on the Korean stock exchanges.
30 Jan taking deposits in Korean won were suspended by the stock exchanges to bring its system into line with new rules banning anonymous cryptocurrency trading. Korean Association of blockchain said that looking for ways of solving problems through the creation of the Commission on self-regulation and the introduction of procedures to prevent money laundering.
Failure Coinpia and other small exchanges to find a suitable Bank support will affect the traders and can lead to a monopoly exchanges, which will have a negative impact on competition and innovation.
Coinpia said that will refund all funds in accordance with the Korean regulation. The company is also exploring alternative processes to restore services.