South Korea will ban the use of anonymous bank accounts in cryptocurrency trading from Jan. 30, Kim Yong-beom, vice chairman of the Financial Services Commission told a news conference in Seoul, Reuters reports.
Holders of anonymous cryptocurrency wallets must now link them to bank accounts in their own name, and have their identities confirmed. The move is aimed at stopping virtual currencies being used for crimes such as money laundering.
And even stricter measures may be introduced later, with officials earlier this month saying a ban on cryptocurrency trading activities was one step being considered.
South Korea’s Presidential office has clarified that an outright ban on trading on the virtual currency exchanges is only one of the steps being considered, and not a measure that has been finalized.
“The government is still discussing whether an outright ban is needed or not, internally,” a government official who declined to be named said after Tuesday’s briefing.
The Bitcoin (TIKER:BTC.EXANTE) price in South Korea extended loss following the latest regulatory announcement, down 3.34 percent at $12,699 as of 04:09 GMT, according to Bithumb, the country’s second-largest virtual currency exchange.