The Financial Services Commission of South Korea (FSC) has published additional details of the system for the identification of users of stock exchange crypto-currencies based on real names this Sunday. This is written by  Bitcoin.com  with reference to local sources.

“The government is going to oblige the stock exchange crypto currency to transfer data about user transactions to banks,” the   FSC official said . “It is expected that banks will implement this system at the end of this month or the beginning of the next.”

The new system will put an end to the practice of using virtual accounts, through which traders could trade crypto-currencies on condition of anonymity.

As the Digital Times notes, 6 commercial banks, including Nonghyup Bank, Industrial Bank of Korea, KB Kookmin Bank and Shinhan Bank, will install a new system until January 30. Initially, it was expected that the system would be installed before January 20.

“6 commercial banks that support transactions using virtual currencies will use the system of input / output of funds based on real names starting from January 30,” the FSC representative added.
“The new service is aimed at existing users of virtual accounts. The creation of new accounts will be suspended for a while, “the newspaper notes.

After conducting the audit of the country’s 6 largest banks, the Financial Intelligence Service (FIU) has begun preparing a manual designed to combat money laundering in the field of crypto-currency. The new system will meet these requirements.

“It is expected that it will not allow the legalization of funds obtained by criminal means, as well as protects minors from investing in such activities,” adds the Times.

In addition, the new system will allow the government to obtain information about transactions using virtual currencies directly through banks to a certain extent.

“As the government can access information about transactions using virtual currencies, this will speed up the process of taxing such transactions.”

Recall that last week, South Korean officials  were convicted  of using insider information when trading crypto-currencies.