South Korea Launches Official Guiding Principles for Digital Trading Platforms and Banks

The South Korean government has officially issued two sets of guidelines already undertaken, which set out regulatory measures for digital currencies. In addition to details of the new "real name" system, which aims to end anonymous digital currency trading, the government has also released anti-money laundering guidelines for banks offering services to digital exchange platforms.

 

Implementation of measures for digital currencies

On Tuesday, the South Korean government officially released a document containing the guidelines for digital regulatory regulations previously promised. This was announced by the Chairman of the Financial Services Commission (FSC), Kim Young. The document details the special measures taken by the government to eliminate speculation in the digital currency, which was first announced on 28 December. In addition, the government also announced on Tuesday its anti-money laundering guidelines prepared by the FIU and FSC for banks dealing with digital currency accounts to be followed.

 

Move to the real name system

A large part of the government's special measures relate to the system of real name accounts issued by the government. This system will replace the practice of current banks in issuing digital accounts. Where banks issue digital accounts for digital currency platform customers to be used for deposits and withdrawals.

On the 30th of this month, the real name system will be ready for deposit and withdrawal services for digital currency accounts. Current digital accounts will be converted to those of the real name at that time. Six major banks will apply the new system, including "Longhyup Bank", "Kookmin Bank", "Hana Bank", "Gwangju Bank" and "Shinhan Bank". Customers will need to open accounts in the bank that provides digital account services to their trading platform. "The new members should be added after strict identification procedures," Kim Jongang IIbo quoted Kim as saying in this regard. According to the document,

"Users who do not have accounts at the same bank will not be able to make additional payments to the bank's digital accounts, but they can withdraw funds ... Foreigners and non-adults under the Civil Code can not use the deposit and withdrawal confirmation service provided by the real name system"