South Korean local banks will be launching a real-name system for cryptocurrency trading in the country.
This plan is to help curb speculation and criminal activities in the country, by making anonymous transactions traceable.
Financial Services Commission Vice Chair Kim Yong-beom said the new measures, will take effect starting next week.
This initiative he said, will prevent foreigners residing outside South Korea who do not have local bank accounts and minors younger than 19 from buying or selling bitcoins and other digital currencies.
He however, mentioned that once the new system is in place, existing accounts used for crypto trading can no longer be used.
This move follows a caution from the South Korean authorities, that there will be a ban on anonymous trading in crypto currencies and crack down on speculative trading and possible crimes.
Authorities are therefore, seeking to prevent the use of crypto currency trading to engage in money laundering, tax evasion and other criminal activities.
The new requirements are meant to ensure that a crypto currency investor’s money comes from a bank account owned by the same individual.
On the same issue, banks will be able to refuse to open accounts with crypto currency exchanges that do not disclose information about suspicious trading.
They were told to closely monitor crypto trading that exceeds 10 million won ($9,338) a day or 20 million won ($18,676) per week and also accounts owned by corporations or groups and report any suspicious activity to the authorities.
“We expect that crypto currency exchanges that are in danger of being exploited for money laundering will be thrown out of the market,” Kim said.