Market - - Jan 24,2018
South Korea has decided to ban anonymous bank accounts that are used to buy & sell cryptocurrencies.
This significant decision is part of a list of measures taken to prevent children and criminals from dealing in Bitcoin across a country which has contained the digital currency amongst its rapidly rising price.
Presently, South Korea is tagged as the world's third-biggest market for Bitcoin trading, with other cryptocurrencies trying to make a big impact. These regulations are anticipated to bring the country closer to the line concerned with financial rules active in other markets.
The results of this decision were evident as Bitcoin dropped from just under $11,000 (£7,800) to reach a low point at $10,179 on Tuesday morning. There is a sudden fear in the eyes of the investors because this crackdown might affect the demand.
This new policy that was already under the development phase will initiate on 30 January. Under this, holders of anonymous bank accounts (cryptocurrencies) or wallets have to link themselves with their respective bank accounts with their own name. In addition, there is also a requirement to confirm their identities.
These requirements are very much similar to the anti-crime regulations setup in the US. Moreover, underage investors as well as foreigners would also be banned from accessing cryptocurrency wallets in South Korea.
In the past few weeks, things have been quite difficult for Bitcoin trading. German and French regulators have also framed a proposal that will be discoursed at the G20 summit held in March. Moreover, British financial regulators delivered a statement regarding extended monitoring actions in the market.