Just recently news.Bitcoin.com reported on South Korean cryptocurrency exchanges implementing new infrastructure systems that comply with the country’s financial regulations. The enforced verification mechanisms will not allow anonymous users to sign up for a Korean-based digital asset exchange and trading platforms must report customer data. Now this week the Korean crypto-exchange, Korbit, has announced it will stop accepting deposits from international citizens.
Also read: South Korean Officials Caught Trading On Insider Knowledge of Crypto Regulations
New Regulations Require Trading Platforms to Make Infrastructure Changes
There’s been a lot of discussion and reports concerning cryptocurrency regulation in South Korea. This past weekend the country’s Financial Services Commission (FSC) revealed some information about a new ‘real-name’ verification system required for all domestic trading platforms. Now the popular South Korean exchange, Korbit, is halting funds from being deposited on its platform that stems from foreign citizens. Korbit has been operating since 2013 and was founded by Kangmo Kim, Louis Jinhwa Kim, and Tony Lyu. The exchange has a lot of cryptocurrency volume, and over the past 24-hours, it has swapped $135Mn USD worth of digital assets.
KRW Deposits for International Residents Will be Terminated by the End of January 2018
Korbit says the new rules have been applied this month “in order to comply with the identification and anti-money laundering regulations being enforced by the government.” The current KRW deposit method will be terminated by the end of January 2018, Korbit details.
“To use the new KRW deposit method, which is slated to be implemented within this month, you must have a Shinhan Bank account registered under your legal name,” explains the Korean trading platform.
Please use this time to create a banking account at Shinhan Bank — We will follow up with further instructions on how to input the new KRW withdrawal account information on Korbit.
South Korean Korbit users must verify their identities, and the exchange recommends opening a bank account in person.
Foreign Deposits Will Not be Allowed Going Forward, and Korbit Recommends In Person Bank Verification
The company says while its possible to create an account using Shinhan’s Sunny Bank mobile application the exchange recommends customers visit a nearby Shinhan Bank location to create a banking account in person. Existing Shinhan Bank account holders and Korbit users need to update their most recent personal information. However, after the new verification infrastructure is in place, Korbit will not reopen its doors to non-Koreans.
“Please note, however, that non-Korean nationals, both resident, and non-resident, will not be allowed to deposit KRW at any domestic cryptocurrency exchanges when the new KRW deposit method is implemented,” Korbit emphasizes.
Korbit also details that it will be revealing more information on why it will not serve international residents and will update its existing customers with all the new regulatory requirements.
What do you think about the recent cryptocurrency regulatory crackdown taking place in South Korea? Let us know your thoughts in the comments below.
Images via CJ Nattanai, Shutterstock, Pixabay, and Korbit.
Need to calculate your bitcoin holdings? Check our tools section.