Six South Korean banks will begin issuing new trading accounts for cryptocurrencies next week by introducing a system that bans the use of anonymous accounts in cryptocurrency transactions, officials at the banks said Tuesday.
Opening cryptocurrency accounts has been banned for weeks until the banks install the system that ensures only real-name bank accounts and matching accounts at cryptocurrency exchanges are used for deposits and withdrawals.
The real-name trading system is part of the government's measures to curb speculative investment into virtual coins, amid growing fears that a bubble over cryptocurrencies may be set to burst.
The new system will also require cryptocurrency exchanges to share users' transaction data with banks.
The six banks include Shinhan Bank, NH Bank and the Industrial Bank of Korea.
Cryptocurrencies, such as bitcoin and ethereum, have rapidly gained popularity in recent years among South Korean investors hoping to make quick money. South Korea is home to one of the world's biggest private bitcoin exchanges, with millions of people estimated to own some of the best-known digital currency.
Despite a boom in cryptocurrency transactions, the exchanges go largely unregulated in South Korea as they are not recognized as financial products, with the country having no rules for protecting virtual currency investors. (Yonhap)
Opening cryptocurrency accounts has been banned for weeks until the banks install the system that ensures only real-name bank accounts and matching accounts at cryptocurrency exchanges are used for deposits and withdrawals.
The real-name trading system is part of the government's measures to curb speculative investment into virtual coins, amid growing fears that a bubble over cryptocurrencies may be set to burst.
The new system will also require cryptocurrency exchanges to share users' transaction data with banks.
The six banks include Shinhan Bank, NH Bank and the Industrial Bank of Korea.
Cryptocurrencies, such as bitcoin and ethereum, have rapidly gained popularity in recent years among South Korean investors hoping to make quick money. South Korea is home to one of the world's biggest private bitcoin exchanges, with millions of people estimated to own some of the best-known digital currency.
Despite a boom in cryptocurrency transactions, the exchanges go largely unregulated in South Korea as they are not recognized as financial products, with the country having no rules for protecting virtual currency investors. (Yonhap)
