Only 19% of South Korean traders have switched to named accounts under the new law

New regulations requiring all cryptocurrency traders use personalized Bank account ID, entered into force on 30 January, but most bills still have not been converted in accordance with the new regulation. Banks are still not converted account most of the cryptocurrency exchanges, and the government does not force them or investors to follow the new rules.

According to the newspaper, No Cut News, only 19% of the accounts were converted in accordance with the new system using real names. The publication claims that only 15% of the accounts of the exchange Bithumb work under the new rules, while for exchange, Coinone, this figure reached 26%. In addition, none of the banks do not convert the accounts for small and medium-sized exchanges:

«Of the 169 500 accounts only 19% was converted to work in the system of real names. Only one in five people committing transactions in a virtual currency works in accordance with the new rules.»

Shinhan Bank previously opened 125 000 virtual anonymous accounts, 28% of whom have been confirmed identity. Industrial Bank of Korea (IBK) prepared for work in the new system, 34 000 accounts out of 127 791 – about 22%. Nonghyup Bank converted from 90 000 139 000 virtual exchange accounts Bithumb, and 26,000 of the 100,000 accounts Coinone. In addition, the Bank began to open new virtual accounts for work on the cryptocurrency exchanges. As of last Friday were opened 174 000 accounts in real names for exchanges Coinone and Bithumb.

A big problem of small exchanges

The system of real names came into force on 30 January, putting an end to anonymous cryptocurrency trading in the country. Six banks have this system, but only three of them convert virtual account for cryptocurrency exchanges: Shinhan Bank, Nonghyup Bank, and IBK. In addition, they serve only the four major stock exchanges of the country: Upbit, Bithumb, Coinone and Korbit.

The absence of conversion accounts in accordance with the new rules has become a serious problem for more than 25 small and medium exchanges. The Korean financial Supervisory service (FSS) has recognized this problem and urged banks to rectify the situation. However, the final decision still remains with the banks. The official representative of the FSS told No Cut News:

«We wanted to ensure transparency of transactions and to prevent money laundering through Bank accounts by linking them to the identity… we Have no purpose or authority to do something more.»

There is no reason to convert

According to the publication, most investors do not feel the need to convert their accounts in accordance with the new rules.

«Even if you fail to comply with the new rules, you can still buy and sell virtual currency,» said Hong Ki-Hoon (Hong Ki-hoon), lecturer of management, Hongik University. «I think there will be cases of abuse confirmed by the accounts – they will be registered for one person, whereas in reality the operation will take something else».

However, he believes that the current efforts by financial authorities to prevent money laundering, such as the prohibition of cryptocurrency trading for minors and foreigners, «relatively satisfactory». Citing the speculative nature of the cryptocurrency market, the Professor believes that «the intention of the government to control it will be difficult to implement».

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