South Korea’s government has been tightening the reins on its vibrant digital currency trading market recently, and that trend shows no sign of slowing. Officials now plan to require more transparency in digital currency transactions by forcing digital currency traders to ensure that they use their real names on cryptocurrency exchange accounts, according to reporting from Reuters.
The government had announced in late December that traders would need to begin using their real names on exchanges. That announcement had been intended to quell speculation in the markets and simplify the government’s efforts to tax gains and track transactions. The latest announcement provides greater clarity about how the government intends to implement those plans.
Digital currency traders will need to ensure that their digital currency accounts meet real-name guidelines if they want to continue to trade. After January 30, deposits and withdrawals between bank accounts and crypto exchange accounts will only be permitted if both accounts bear the customer's real name.
The move is designed to eliminate the “veil of secrecy” that provides digital currency transactions with some measure of anonymity, and comes on the heels of reports indicating that the government might force exchanges to share customer information with the nation’s banks.
According to one Bitcoin investor who spoke with Reuters, the news was not unexpected:
“Everyone knew this was coming, as the government already said they will enforce the real-name system before. Rather, I can see this as a chance to go in, not out. I don’t see any reason to take my money out.”