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The definite-name system could be live for deposit and withdrawal services to cryptocurrency accounts on January thirtieth. Active digital accounts could be replaced to definite name accounts presently. Six major banks will execute the new system adding Shinhan Bank, Kookmin Bank, Nonghyup Bank, Gwangju Bank and Hana Bank. Clients have got to open an account at the bank which is presently providing digital account services to the exchange they are going to be riding. New members could be added after stringent identification procedures.
Adapting to Real-Name System
The Hankook-Ilbo reported that In contract with the government directions, banks wish to monitor the exchanges and their service for any odd transactions and if suspected of money laundering they have got got to verify the transaction goal and funding reduction.
ML and Suspicious Transaction Reporting
According to the document:
If the transaction volume is more than KRW 10 million per day, more than KRW 20 million for 7 days, or frequent transactions occur in a brief time, it may be reported to the FIU which is the money laundering monitoring authority. The bank can terminate the transaction if the exchange has a over the best threat of money laundering.
Source: http://www.unkrypted.com/south-korea-bans-anonymous-crypto-trading/
Users who do not have an account at an identical bank as the digital bank aren't competent to make further payments to the digital bank accounts, but they will withdraw moneyForeigner and minors below the Civil Law can not use definite name confirmation deposit and withdrawal account service.
A major a area of the governments exceptional measures focuses on the new government licensed account systems with a true name. This system will re-determine banks existing exercise of digital account issuance. Currently, by the digital accounts (which are issued by banks for cryptocurrency exchanges) customers can deposit and withdraw money.
The document explains the governments exceptional measures for the exclusion of digital currency speculations which used to be first declared on December 28. In addition, the government additionally introduced its anti-money laundering (AML) directions, for all banks and exchanges dealing with cryptocurrencies. The Anti-Money laundering directions are willing by the Korean Financial Intelligence Unit (FIU).
They added:
Earlier this month, the FIU and the Financial Supervisory Service (FSS) implemented on-web site inspections of the countrys 6 major banks to make positive that they have got fulfilled their anti-money laundering compulsions. The FIU afterward twisted a suite of anti-money laundering (AML) directions which have been additionally released on Tuesday.
Crypto exchanges continuously separate their funds from the clients. However, the governments assessments exposed that just comparatively a number exchanges are collecting funds from clients by their atypical corporate accounts which have been opened at banks. In just comparatively a number cases, clients funds have been transferred to the accounts of the exchanges representatives. One of the exchange accumulated funds from clients by 4 bank accounts and spent fifty eight.6 billion won from it. The monetary authorities noted that this would lead to fraud and cheating.
