Lawmakers of South Korea said that on 30 January, the activities of cryptocurrency exchanges in the country will be legalized, but this is the abolition of anonymous trading: all users of exchanges will need to be identified.
In his most recent statements
The financial services Commission of South Korea (FSC) has confirmed that the exchange must allow transactions to only those clients whose identity corresponds to the registered Bank account.
«The establishment of a system to verify the names with the aim of withdrawing and depositing funds to accounts will be completed by January 30, 2018″, — stated in the documents of the FSC.
At the moment, six major Korean banks agreed to implement the necessary changes in their work after working with the government on verification of the anonymous crypto-currency accounts at the beginning of this month. Among these banks, Shinhan Bank, Nonghyup Bank, Industrial Bank, Kookmin Bank, Hana Bank, Gwangju Bank.
In response to future changes, the largest stock exchanges of the country began to update the requirements for their customers. For example, Korbit, one of the leading trading platforms, announced to its users to open a Bank account for Shinhan trading operations.
«To meet the new requirements which will enter into force at the end of this month, you must have an account in Shinhan Bank registered in your real name. Please use the remaining time to good use and take the necessary measures», — stated in the message
Foreigners and minors are citizens of a country no longer able to trade on the cryptocurrency exchanges of South Korea, as a virtual anonymous accounts, which they previously used for this purpose is now forbidden.
On Monday, the Seoul also asked
to the question of cryptocurrencies, having considered the issue of taxation of exchanges. From now on, all cryptocurrency trading platform will be required to pay local corporate income tax, including income for the year 2017, in the amount of 24.2%.
The consequences for traders
This decision of the regulator will have a double effect:
On the one hand, after resolving the crisis with a possible trade ban on one of the largest markets, bitcoin is poised for growth, which has already launched, returning today to the levels above $11 000. We will remind, the news of the ban cryptocurrency exchanges in South Korea was one of the main reasons for the collapse of the bitcoin below $10 000 last week.
On the other hand, the South Korean market of cryptocurrency to isolate even more as traders from other countries can’t legally enter it. It will probably lead to more local growth rates of cryptocurrencies and exchanges of South Korea will be extremely lucrative for arbitrage trading — but only for those who will be able to find workarounds.