In a slight easing of its stance on bitcoin and its ilk, regulators say all trades must be traceable and monitored
SEOUL, South Korea – Softening its tough stance on cryptocurrency trading for now, South Korea said Tuesday it would adopt a system requiring that transactions that until now were anonymous be traceable. It also will more closely monitor trading for signs that transactions may be linked to tax evasion or other crimes.
The bitcoin markets appeared to take the news in stride.
South Korean Financial Services Commission Vice Chair Kim Yong-beom told reporters that starting next week, local banks will launch a real-name system for trading of cryptocurrencies to help curb speculation and criminal activities.
That means banks will have to ensure any cryptocurrency investment comes from a bank account owned by the same individual. The measure will prevent such trading by foreigners living outside South Korea who do not have local bank accounts. It also will ban minors younger than 19 from buying or selling bitcoins and other digital currencies.
Once the new system is in place, existing anonymous accounts used for crypto trading will be canceled, he said.
The moves follow warnings by South Korean authorities that they might ban anonymous trading in cryptocurrencies and crack down on speculative trading.
