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South Korea to Tighten Bitcoin Exchange Rules Amid ‘Speculative’ Boom

The South Korean authority announced today it will move to prohibit domestic cryptocurrency the boards from allowing users to make transactions through anonymous accounts, native news sources report.

As part of what appears to be a series of updates moulded to improve oversight of industry practices, the government will also go to bar banks from issuing new virtual accounts to cryptocurrency exchanges.

Corresponding to the South Korean news agency Yonhap, the announcements were cook up d be reconciled by Hong Nam-ki, the minister of the Office for Government Policy Coordination, after colloquy with vice ministers from other governmental bodies Non-Standard irregardless the recent rise in cryptocurrency interest and ownership domestically.

Hong’s disclosure came just after an hour since the head of South Korea’s monetary regulator warned against the bitcoin bubble during a meeting with the hurry.

“I bet the bubble in bitcoin will burst later,” said Choe Heung-sik, the governor of the Pecuniary Supervisory Service (FSS).

Hong told the news source that solitary accounts with real and matching identity can be allowed for deposit and withdrawals.

The domination’s ban on using anonymous accounts, effectively a mandate that exchange providers depict know-your-customer (KYC) due diligence, is seen as the latest move to curb the trading movement around cryptocurrencies in the country.

It can also be seen as the result of recent upshots in which government bodies were reportedly considering measures to stop what they called an “overheating of virtual currency speculation.”

According to the boom, the Financial Intelligence Unit and the Financial Supervisory Service will tool the regulation and supervise exchanges to abide the new rule.

Image of South Korean Won via CoinDesk archive.

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