The South Korean government announced in a statement that people who do not convert the amount in their existing crypto money accounts to traditional currencies may face sanctions.. It was stated that the system planned to be implemented will be implemented this month, regardless of the level of users in the exchanges.
Crypto Currency Traders May Face Penalty
South Korean financial officials, with their statement, He stated that people who do not convert their remaining money on their exchanges into traditional currencies may face penalties.
Currently, people in South Korea can trade cryptocurrencies using virtual accounts.. However, while the authorities continue to strictly warn exchanges and banks that only accounts that match by name and information can trade cryptocurrencies, it was stated that in case of violations of these rules, violators will be identified and fined.
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”Cryptocurrency traders can change their virtual accounts to their real names and continue to trade. However, if people who do not accept this are detected, fines will be imposed.. If the contrary persists, they will be prevented from withdrawing funds from their accounts.”
All currency transactions and transactions in South Korea, as of August 3, 1993, using real names. has to be done. Before this law came into force, many large amounts of money trade in the country were carried out by hiding names and titles.. In 2014, the country expanded the scope of this law a little bit, imposing sanctions on people who trade money in this way, ranging from 47 thousand$ to 5 years in prison.
Although it is not yet known how much this penalty will be for people who trade in cryptocurrencies, past practices can shed light on us. In 1993when the law came into effect, the government itself seized 60% of the bank accounts of people who traded money contrary to the law.
The government itself. officials added the following to their statements on the subject:
“We are currently working on this issue.. It would be very good for the country to prevent such money transfers.. We believe that if we successfully integrate this system into the markets, we will be in a position to obtain clearer information on currency trades made from individual accounts.”
Banks Have to Adapt to the New System
The government discussed the issue with 6 major banks in the country over the past week.. While the measures to be taken about such accounts were discussed at the meeting, the South Korean government once again revealed its stance on money laundering and terrorist financing.. However, when the government extended the inspection, which was initially announced as 11 January, to 16 January, the banks started to rebel against this situation and announced that they would not use the new system.. The most notable among these banks is the Shinhan bank.. The bank sent a text to many exchanges, including Bithumb, the largest cryptocurrency exchange in the country, stating that the government will not install the new system.. While other banks are expected to follow this trend after Shinhan bank’s move, the government still insists on the system. While he was indoctrinating about the implementation of these practices, he also stated that the main reason for this is not the cryptocurrency trading.
So much so, a finance official who spoke on the subject expressed the government’s full stance on the event as follows:
“Rather than whether the accounts that trade cryptocurrencies are virtual or whether it is illegal or not, the main thing for the government is the activation of this system.”
After the pressure from the Korean government, the banks offered the offer. agreed.
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