South Korea seems to be exercising caution when it comes to cryptocurrency trading, and has introduced new legislation surrounding the practice. According to an article by CoinDesk, the government of South Korea has now taken steps to ban any domestic trades that are made by anonymous accounts. This move is among the latest in a long list of efforts by governments around the world to curtail the illegal activity that can flourish via cryptocurrency exchanges.
With some trading platforms allowing anonymous accounts, users who engage in criminal activity—such as money laundering—are not easily identifiable. “The government’s ban on using anonymous accounts, effectively a mandate that exchange providers perform know-your-customer (KYC) due diligence, is seen as the latest move to curb the trading activity around cryptocurrencies in the country,” reported CoinDesk.
This news comes on the heels of an announcement from the governor of South Korea’s Financial Supervisory Service: “I bet the bubble in bitcoin will burst later,” said Choe Heung-sik, quoted in an article by Yonhap News. The article also notes that cryptocurrencies are not considered financial products in South Korea, and currently there are no rules for protecting virtual currency investors.
It will be interesting to see what effect these legislative changes may have on the price of Bitcoin and other cryptocurrencies in the days and weeks ahead.
Feature image: South Korea currency bills by YunHO Lee, Flickr