The South Korean authorities will start inspecting major banks for their compliance with cryptocurrency regulations on Monday. This make off follows the regulators’ recent announcement prohibiting the use of virtual bank accounts for anonymous exchange.
Also read: Russian Regulators Draft Law to Restrict Crypto Mining, Payments, and Cosmetic Sales
Inspecting 6 Major Banks
The South Korean Financial Info Unit (FIU), under the Financial Services Commission (FSC), and the Financial Supervisory Accommodation (FSS) said on Sunday, January 7, that they will jointly study 6 major banks for compliance of cryptocurrency regulation.
The inspection will guide place between January 8 and 11. Woori Bank, KB Kookmin Bank, Shinhan Bank, Nonghyup Bank, Korea Increment Bank (KDB), and Industrial Bank of Korea (IBK) will be inspected.
This up sticks follows the government’s clampdown on the use of virtual accounts for anonymous trading at the end of behind month, as news.Bitcoin.com previously reported. Financial News delineated:
The FIU and FSS will check whether banks have properly implemented their anti-money washing obligations to operate virtual accounts…The FIU has imposed more than 40 checklists on in doubt transactions, stipulating virtual currency as a ‘high risk’ transaction.
The Korea Herald commented, “It is rare for the two organizations to out a joint survey, a move that industry watchers viewed as beyond a contemplate on anti-money laundering measures by the banks and ultimately intended to cool the overheated merchandise.”
Real-Name System Expected Around Jan 20
Last week, the FSS revealed that the amount of fiat keeps at crypto exchanges as of December 12 last year amounted to 2.067 trillion won [~USD$1.95 billion]. Furthermore, 111 understood bank accounts were detected at the six aforementioned banks at the end of December, the front-page news outlet detailed.
In an effort to end anonymous trading, the government has prohibited banks and crypto the bourses from both issuing new virtual accounts and adding new members to existing stories, as news.Bitcoin.com previously explained.
The government is developing a real-name classifying system which is expected to be introduced around January 20. Joongang Every day elaborated:
The real name confirmation service that banks are erection by the end of this month is a method of allowing deposits and withdrawals only when the account of the broker who is identified and the account of [the trader at] the virtual currency exchange are the same.
What do you create of the government inspecting major banks for crypto regulation compliance? Let us be aware in the comments section below.
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