Although all South Korean crypto exchanges have to use the real-name accounts, in reality, only half of their customers verified their identity and converted virtual accounts to real-name ones.
The South Korean authorities are not satisfied with the rate of conversion of virtual accounts of crypto traders to real-name verified ones. According to Money Today, although the name verification service has been in operation for more than half a year since its inception, the conversion rate to the real-name verified accounts for each exchange site is only 40 to 50%.
Currently, the South Korean financial authorities discuss possible ways to foster crypto traders to convert their virtual crypto accounts into real-name ones. One proposal supposes that banks suspend providing services to those virtual accounts. Currently, unverified accounts are not allowed only to receive deposits, while withdrawals are still being handled.
According to the publication, it is expected that restrictions will be imposed as early as November.
Some crypto exchanges already use similar methods to encourage their customers to switch to real-name verified accounts. Thus, in May, Bithumb lowered the daily withdrawal limit by 10% to 45 million won ($41,795).
Published at Tue, 11 Sep 2018 16:43:16 -0400