The South Korean Financial Services Commission (FSC) will inspect three of its banks to see if they are conforming to new anti-anonymity regulations.
In January, the financial watchdog announced that cryptocurrency investors in South Korea would have to use their real-name bank accounts in order to be able to deposit funds. The new regulation intended to remove multiple trading accounts on domestic cryptocurrency exchanges and to strengthen positive views of cryptocurrency trading by tackling money laundering.
In a statement, it announced: “We have already executed sufficient procedures for confirming the identity of a member when receiving a new member via a corporate account and it is against equity to allow only a few exchanges to issue new virtual accounts.”
FSC and the Financial Intelligence Unit will begin on-site inspections on three banks – NongHyup, KB Kookmin and KEB Hana Bank – from 19 to 25 April.
The inspection will focus on whether or not the three banks have managed to implement the new rules successfully. If so, it is hoped that this will contribute toward South Korea’s progressive approach to cryptocurrency and blockchain technologies.
Financial regulators and banks aren’t the only entities with blockchain developments in South Korea; they are part of an industry-wide paradigm shift that is experiencing frequent highs and lows. South Korean cryptocurrency exchanges are now to be taxed under existing policies, while Seoul is pushing to have its own cryptocurrency.
Furthermore, the Fuji News Network (FNN) also announced that the Korean government is setting up full-scale cryptocurrency regulations after local elections on 13 June, just ahead of a planned virtual currency international conference for G20 members on 14 June.
The scramble to regulate
More recently, the United Kingdom’s Financial Conduct Authority (FCA) also announced that it would be working with the Bank of England and the UK Treasury to begin discussions on how to regulate cryptocurrencies.
“People are becoming increasingly aware of cryptocurrencies, such as Bitcoin,” said Nicky Morgan, a Member of Parliament and chair of the Treasury Committee, “but they may not be aware that they are currently unregulated in the UK, and that there is no protection for individual investors.”
In China, similar efforts are also gaining momentum. In March, the Institute of International Finance, part of The Peoples Bank of China (PBOC), gave refreshing insights into the evolving attitudes in the country. In a contrasting report to China’s present stance on cryptocurrencies, exchanges and ICOs, it stated that cryptocurrencies could bear risks against the Chinese Yuan (CNY), but the Institute of International Finance is in favor of establishing a regulatory framework for cryptocurrency on a global scale.
South Korea is a huge proponent in the tide of major financial entities and governments pushing to recognize cryptocurrencies. Despite the current shaky market and past controversies, global approaches to the technology are undergoing profound political changes and 2018 is already proving to be an extraordinary year for positive blockchain advancements.