The new rules for cryptocurrency trading recently introduced in South Korea presuppose mandatory authentication for all traders. However, according to a local report, a week into the implementation, only 8.21 percent of all South Korean cryptocurrency virtual accounts have been through the authentication procedure.
The account authentication system have already been introduced in six major South Korean banks. However, only three of them provide services for cryptocurrency exchange accounts conversion, namely, Tndustrial Bank of Korea (IBK), Nonghyup Bank and Shinhan Bank.
The authorities insist on conversion of virtual accounts into real ones, so that the traders could transfer money for cryptocurrency trading from them directly. This new system enables banks both to check and verify their customers’ identities and combat money-laundering. It should also be noted, that minors and foreigners are not allowed to open virtual accounts.
However, according to report published in Yonhap newspaper, “the total number of accounts that these three banks have to convert to the real-name system is a total of 1,745,000″.
Despite all the measures being taken, after one week “Only 143,330 of 1,745,000 accounts were converted. Not even 10% conversion rate…1.6 million accounts have not confirmed their real names,” – the report read.
“The slow pace of real-name trading is that investors do not need to confirm their real name if they do not intend to spend more money on virtual currency,” – the news outlet explains.