Two major South Korean crypto exchanges, Bithumb and Coinone announced that unverified users won’t be allowed to make withdrawals in Korean Won. Both the exchanges further added that starting next month, users of Coinone and Bithumb must have verified real-name accounts in order to withdraw and deposit the fiat currency.
The Bithumb exchange which is the largest crypto exchange in terms of trading volume in South Korea announced that the service will end on October 1 for corporate members and on October 15 for individual members. The exchange, however, clarified that this announcement only affects fiat withdrawals.
Coinone, the third-largest South Korean crypto exchange, also made a similar announcement on September 14. The exchange mentioned that the Nonghyup Bank has requested Coinone to limit the withdrawal of Korean Won for members who have not verified their accounts by a certain date.
The Coinone crypto exchange said that after October 15, users who don’t have real-name accounts won’t be able to withdraw and deposit in Korean Won. The exchange requested its users to make withdrawals before the stipulated date in case they do not plan to convert to real-name accounts by then.
Coinone also reiterated like Bithumb that this notice will not affect regular crypto trading, withdrawals or deposits. Both the exchanges have confirmed that minors, foreigners, and corporations are not eligible for real-name conversion, as mentioned in the Bitcoin News report.
Since January 30, South Korea began a real-name trading system for cryptocurrencies banning the use of anonymous bank accounts to carry out transactions. This was a move to prevent virtual coins from being used for money laundering and other illegal activities. This real-name trading system is one of the Korean government’s latest measures to curb speculative investment into virtual coins amidst growing fears that the crypto bubble may burst.
According to this new system, crypto exchanges are required to share the transaction data of their users with banks. Around three million people in South Korea have apparently invested in virtual currencies. South Korea’s six banks have started verifying the identities of cryptocurrency investors, as mentioned in the Yonhap news report.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]