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South Korean Banks May Require Crypto Exchanges To Share User Data

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Banks in South Korea will require cryptocurrency exchanges to share users' transaction data with banks, reports said.

Banks are expected to introduce the system late this month or early next month, the Investor quoted an official at financial authorities as saying.

Banks in the country, where cryptocurrency is rising in popularity, do not offer virtual accounts to customers to do cryptocurrency transactions.

The South Korean government has been working on a system to ban anonymous cryptocurrency trading, and enforce real-name identity verification on traders.

The government can access users' transaction data via banks, which will verify whether real-name bank accounts match with accounts at cryptocurrency exchanges.

Meanwhile, the Digital Times reported that South Korea's Financial Services Commission has selected six commercial banks including Nonghyup Bank, Industrial Bank of Korea, KB Kookmin Bank, and Shinhan Bank to introduce the new system from January 30.

The FSC is a government agency with the statutory authority over financial policy and regulatory supervision.

However, the new service "is targeted at existing virtual account users, and the opening of new accounts will be suspended for the time being," the publication quoted an FSC official as saying.

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