Jan. 23, markets are reacting a second time to news that South Korea will ban anonymous exchanges starting January 30, despite the fact that the information on the planned regulation has been available since late December and reported on since early January.
After the South Korea’s Financial Services Commission (FSC) today announced the date by which the country’s exchanges will be required to allow only ‘real-name’ trading, mainstream publicationsreported on the known move for a second time, unnecessarily increasing FUD in an already bearish market this week.
The move, which was reportedly initiated to curb speculation, requires that bank accounts used for deposits and withdrawals to virtual currency exchanges have matching, real-name accounts at the exchanges. The regulations will also ban the issuance of new virtual accounts to crypto exchanges.
Not new news
South Korea’s plan to ban anonymous exchange operations is nothing new, today’s announcement merely setting the exact date.
Authorities had announced the ban at the end of December, but had not yet set a concrete date for when the regulations would go into effect. “Establishment of a system for ‘real name verification of deposit and withdrawal accounts’ for settlements will be completed by January 30, 2018,” the FSC documentation released today states.
In mid-January, South Korean authorities announced that crypto exchange customers had until the end of the month to convert virtual bank accounts connected to crypto exchanges to real-name ones, noting that those who do not comply will face fines.
In addition, Non-Koreans and minors will no longer be able to trade cryptocurrency on the country’s exchanges, a point that lawmakers had also previously made known.
Also this week, plans to levy a combined corporation tax and local income tax of 24.2% on exchange profits for 2017 were announced, with platforms obliged to pay by March 30 and April 30 respectively.
Bitcoin prices continue to fall in the 24 hours to press time, falling below $10,000 this afternoon, Jan. 23, and causing losses for multiple altcoin assets as a result.