Two South Korean largest cryptocurrency exchanges have imposed on their trading platform a ban on the removal of the Korean won is not verified by others. Starting next month, in order to put in the account or withdraw currency, users Bithumb and Coinone will need to pass the verification.
Bithumb, the largest cryptocurrency exchange in trading volume in South Korea, announced on Friday, September 14, the intention to terminate the service of the withdrawal of Fiat for all users that do not have a verified account.
The service will be completely prohibited from October 1 for corporate members, and October 15 for individuals. According to Bithumb, this step must comply with the government’s policy on the fight against money laundering.
However, as explained by the exchange, this announcement applies only to the withdrawal of Fiat currency, stressing:
“Cryptocurrency transactions and their conclusion will be carried out in a usual mode”.
Third largest cryptocurrency exchange in South Korea, Coinone, also made a statement similar Bithumb, with the introduction of the ban from October 15.
As explained by the exchange Bank Nonghyup ordered Coinone to limit the output to Korean currency for members who have not verified their accounts in accordance with the Act on reporting and using specified information about financial operations.
Exchange asked users to do all the lifting, if they do not plan to verify your credentials.
Like Bithumb, the exchange confirmed that this prohibition does not apply deposits and withdrawals of the cryptocurrency funds. Both exchanges confirmed that the verification of corporations, minors and foreigners will be rejected.
What’s the rush?
In late January, the South Korean government introduced a system of real-name for kryptomere. Thus, users of exchanges can link their accounts to Bank accounts, providing conversion to the stock exchange.
Until now, banks have offered this service to only four of the best exchanges of the country – Bithumb, Upbit, Coinone and Korbit. Nonghyup Bank provides this service Bithumb and Coinone.
Despite the efforts of the government, banks and stock exchanges, according to local media reports, to date, only about half of the users of cryptocurrency trading platforms have moved to introduced by the government system, therefore, banks put pressure on the crypto currency exchange to take action.
At the time of this writing, no Upbit or Korbit, have made declarations of intent to prohibit the withdrawal of Fiat funds are not verified users.