A number of Korean exchanges and banks have announced that they will be accepting new investors starting February. CoinOne, one of the largest crypto exchanges and NH, its partnering bank, made the announcement after Korean regulators effected strict new regulations. The regulations, which became effective on January 30, seek to curb anonymous trading in the Korean crypto currency industry. To trade crypto currencies, traders are required to open real name accounts with banks which also serve their exchanges.
In a statement, CoinOne said it was issuing new bank accounts for deposits and withdrawals to its customers and new investors. The accounts will be processed by NH bank. “In order to use CoinOne, all users will be required to have an account with NH Bank. Deposits can only be made after the two bank accounts have been linked,” said CoinOne. The exchange added that customers who do not have an NH bank account will be barred from making deposits into their CoinOne accounts. However, the bank clarified that customers with existing non-verified accounts could still withdraw their funds from the platform.
Starting January 30, Korean regulators required banks to start converting anonymous virtual currency accounts into real-name accounts. NH Bank, which is among the six major banks participating in the new system, said it planned to limit the number of conversions for CoinOne to 150,000. The bank has over one million such conversions.
Also participating in the system are Gwangju, Hana, Kookmin, Shinhan and IBK banks, which plan to start conversions for their crypto currency exchange partners in February. Currently, major exchanges like Bithumb and Upbit are banking with NH bank, Shinhan and IBK respectively.
Under the new system, small and mid sized exchanges are set to suffer because banks are not willing to issue new accounts. According to the Korean Blockchain Association, they are barred from using their corporate accounts. Before the new system was installed, opening of new accounts had been banned for weeks.
The new regulations also require exchanges to share users’ data with banks. The main aim of the regulation was to bar foreigners and underage people to engage in crypto currency trading, while legitimizing crypto currency trading by improving transparency.