South Korea’s Government is finally going to be regulating the Cryptocurrency exchanges based on real-name registration system starting today being 30th of January, 2018. The announcement that came from the Vice Chairman of South Korea’s Financial Services Commission, Kim Yong-beom, in a news conference in Seoul,  that holders of anonymous Cryptocurrency wallets must link their virtual wallets to their bank accounts and have their identities known. Anonymous bank accounts are banned to stop cryptocurrencies from being used for money laundering and other crimes. While, the government have, in the past made efforts to control the cryptocurrency trades, and this action, to control the trades, triggered a heated controversy in the country with a petition demanding an end to the regulation which gained a lot more than 200, 000 signature in less than a month demanding an answer from the government.South Korea is the third biggest market for trades in Bitcoin in the world, putting the country behind Japan and US and the six banks in the country are already verifying cryptocurrency investor’s identities.

This ban has been in place since January 23 while banks work to install the system that makes certain that real-name bank accounts match the accounts at cryptocurrency exchanges for withdrawals and deposits. These rules allow banks to abide by their Know Your Customer, Anti Money Laundering obligations, the document that was published on 23 said. Again, these regulations against cryptocurrencies were introduced first by Hong Nam-ki, minister of the Office for Government Policy Coordination, late last year during the time bitcoin hit its remarkable highs. He had told the media that the government “can’t let this abnormal situation of speculation go on any longer”In South Korea, again, underage investors and non-resident foreigners are not allowed to open cryptocurrency accounts, and so they are excluded from the real-name system. This system also serve as a database to help impose transaction-related taxes on exchanges.Many cryptocurrency traders foresaw that prices of cryptocurrencies will bounce back when banks allow opening of new cryptocurrency accounts while other cryptocurrency traders believe prices will adjust and that only four cryptocurrency exchanges (Coinone, Upbit, Bithumb, and Korbit) will attract new investors since banks are expected to reject transactions with small and mid-sized exchanges.

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Bitcoin and ethereum are gaining popularity in South Korea now while investors are hoping they make quick money. However, despite the rise in cryptocurrency transactions, exchanges still go largely unregulated in South Korea because they are not seen as financial products and the county does not have any rules to protect cryptocurrency investors