Photo = Reuters
After coming September, most of the small and medium-sized cryptocurrency exchanges that buy and sell bitcoins are expected to stop operating. Financial authorities advise that users of small cryptocurrency exchanges, except for the four large companies, should change accounts as soon as possible.
According to the financial sector on the 28th, the cryptocurrency exchange must secure a real-name bank account due to the revised Specific Financial Information Act (Special Payment Act), which will take effect on the 25th of the following month.
Nonghyup Bank is partnering with Bithumb, the No. 1 market share in domestic bitcoin transactions, and Coinone, the third place. K-Bank and Shinhan Bank support real-name accounts of 2nd place Upbit and 4th place Kobit, respectively. It is estimated that there are around 100 exchanges that have not secured real-name bank accounts (10% of total cryptocurrency transactions).
Now, you can invest in any cryptocurrency exchange even if you don’t have a real-name bank account. However, cryptocurrency exchanges are required to obtain a’guarantee’ from banks stating that transactions are secured within six months of enforcement of the law and report to the Financial Services Commission. Banks are lukewarm about opening real-name accounts because they are responsible for the risk and stability of the exchange.
An official from the Financial Services Commission said, “It is not very likely that small and medium-sized cryptocurrency exchanges will be chosen by banks. If you are investing in a place other than the four largest companies, it is safe to change the exchange in a hurry.”
Reporter Park Jong-seo [email protected]
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