South Korean Banks Drop Crypto Accounts as Government Plans a Ban
South Korean regulatory authorities have announced a plan to ban banks from activities involving crypto courses, causing major banks in the country to declare that they no longer issue accounts required for crypto trading. South Korea's best bitcoin exchanges are all performed, including Bithumb, Coinone and Korbit. Banks that have forwarded notices include Shinhan Bank, Korea Development Bank and Industrial Bank of Korea.
Crypto Ban Planned for Banks, Minors, and Foreigners
The South Korean government has had meetings daily to discuss the regulation of crypto currency. On Wednesday, local publications reported that regulators plan to ban banks from activities involving crypto curves.
In addition, the Korea Herald reported that "banks in Korea that provide virtual bank accounts for kryptocurrency trades need to verify account holder identification when creating new", according to the plan. In addition, the supervisory authorities plan to ban minors and foreigners from trading in crypto currency and creating bank accounts in the country.
In addition, the Korea Herald reported that "banks in Korea that provide virtual bank accounts for kryptocurrency trades need to verify account holder identification when creating new", according to the plan. In addition, the supervisory authorities plan to ban minors and foreigners from trading in crypto currency and creating bank accounts in the country.
Virtual bank accounts are issued by traditional banks to customers of encryption institutes. A customer wishing to start trading on an encryption exchange must first open a virtual bank account and deposit money for it. All major Korean exchanges, including the country's largest bit coin exchange Bithumb, require customers to open virtual bank accounts before trading. Kyunghyang Shinmun described:
Virtual currency can only be traded after you sign up for a virtual currency exchange and deposit of money in a virtual account assigned to the exchange.
Banks Ditching Crypto Accounts
Wednesday's announcement marks the first time that regulators have applied restrictions on virtual bank accounts.
The country's largest state and commercial banks responded immediately by announcing that they will stop issuing new virtual bank accounts for encryption exchanges. Some even cancel existing accounts, Arirang News reported and added the following:
Such measures will effectively freeze most merchants from the crypto exchange market, as the country's leading virtual currency exchanges like Bithumb and Coinone require users to create a virtual account before they can make transactions.
If a bank closes a stock's virtual bank accounts, then "it's basically impossible to sell and buy virtual currencies through the bank," noted Business Korea.
Major Banks Jumping Ship
Among the banks that have decided to stop issuing virtual accounts are Shinhan Bank, Korea Development Bank (KDB), Industrial Bank of Korea (IBK), Woori Bank, KB Kookmin Bank and KEB Hana Bank.
Shinhan Bank, which issues virtual accounts for Bithumb and Korbit, will not issue new virtual accounts, but will not cancel existing accounts, according to Kyunghyang Shinmun. In November, news. Bitcoin. com reported at the bank launching a cryptocurrency custody service.
The state KDB issuing virtual bank accounts for Coinone announced that it will "stop all the businesses that are related to kryptocurrency transactions, including bitcoin, from January next year," Business Korea reported on Wednesday.
Woori Bank, which issues virtual bank accounts for Korbit, has the same access as KDB. The bank will cancel existing virtual accounts and suspend the issuance of new. IBK Bank, KB Kookmin Bank, and KEB Hana Bank have all ceased to issue virtual accounts.