Following the recent regulations by the South Korean government, cryptocurrency traders were mandated to use their real names in trading, the country is already seeing some crypto traders adhere to this new trading law with over 8% of S.Korean crypto accounts already converted to real name bank deposit accounts.
South Korea is said to be among the biggest players in the cryptocurrency space and a regulatory move by the government a few weeks back saw a dip in the price of Bitcoin and other cryptocurrencies. This was fueled by FUD on South Korea putting a ban on cryptocurrencies.
The government following a series of unannounced checks at leading cryptocurrency exchanges came up with new regulations which now mandates all traders to use their real names as opposed to traders previously using anonymous accounts.
According to South Korea’s Yonhap news agency, as of Sunday, there were 143,000 virtual ledgers for cryptocurrency trading which account to about 8.21% of total the entire cryptocurrency accounts has been converted to real name bank accounts in the country.
Based on records from 3 local banks (Industrial Bank of Korea, NH Bank, and Shinhan Bank), there are at least 1.74 million cryptocurrency accounts in the country Yonhap news reported. This, therefore, means it could take a couple of weeks before a significant amount of these S.Korean crypto accounts are converted to real name bank accounts.
This is, however, less than a week following the January 30th deadline which the government put in place. The South Korean authorities aim to curb speculative investments with this new measure as their worry keeps growing on Bitcoin and cryptocurrencies being in a bubble.
Bitcoin and other cryptocurrencies prices have since the initial crackdown by South Korea not recovered as several other incidents from other governments and institutions have hit the community almost daily with the most recent crackdown on cryptocurrencies involving some US and UK banks stopping their clients from using credit cards for cryptocurrency purchases.
What are your thoughts following S.Korean crypto accounts now being more “centralized”? Do you think other nations will emulate this approach and apply in their various countries?
Let us know your thoughts below.