Many investors in South Korea still do not comply with the government’s decisions. The government banned cryptocurrencies with anonymous accounts and asked investors to use their real names.. So far, less than 10% of these investors have converted their digital accounts into real-name accounts.
Conversion Rate 8%
The real-name system for users on cryptocurrency exchanges, 30 Effective as of January. This new system was supposed to eliminate existing digital accounts that allow anonymous trading of cryptocurrencies.. However, after a week, only 8.21% of all digital cryptocurrency accounts in the country have switched to the real-name system.
Six major South Korean banks have established the real-name system.. However, only three of these banks offer account conversions on cryptocurrency exchanges: Enterprise Bank of Korea (IBK), Nonghyup Bank, and Shinhan Bank.
According to regulators, existing digital accounts of people who want to deposit money into their accounts for cryptocurrency trading are not real- they need to convert accordingly to the name system. This new system allows banks to verify customers’ identities and comply with their Anti-Money Laundering (AML) obligations.
However, according to reports released Tuesday, “the total number of accounts these three banks need to convert to real-name systems is 1,745,000.” However, even after a week, these banks still converted very little of this amount.. According to the report, of these “only 143,330 of the 1,745,000 accounts were converted.”
“The conversion rate is not even 10%.. There are 1.6 million accounts that do not verify their real names.”
Conversion Takes Slow
According to the published report, IBK has the highest conversion rate among these three banks.. Serving the Upbit exchange, which is also powered by cocoa, the bank created approximately 570,000 accounts, but only made 12.46%, or 71,000, of them eligible for the real-name system.
Shinhan Bank Korbit accounts to real name system. So only 12,000 out of 122,000 accounts.
Nonghyup Bank converted 13,000 accounts for Coinone, which is 8.67% of 150,000 accounts.
The bank is the same Converted 47,000 (5.22%) of Bithumb‘s 900,000 accounts at the time. The reason Bithumb has such a low rate is because Shinhan Bank has decided to delay its conversions for Bithumb.. Police are still investigating Bithumb due to hacking attacks last year and the bank is slowing down the conversion process because of these investigations.. In addition, minors and foreigners will no longer be able to open accounts in South Korea.
Currently, customers who continue to use their existing digital accounts can trade with their existing funds.. These customers can also withdraw money from these accounts without any intervention.
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