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According to reports, Korean banks are taking measures to limit the services of customers who have not been certified. More than seven months have elapsed since the South Korean government introduced the cryptocurrency real-name system, but according to local media reports, only 40% to 50% of the country’s four cryptocurrency exchanges have completed real-name conversion.

1. The account real name conversion rate is only 40–50%

It has been more than seven months since the South Korean government introduced the real-name system for cryptocurrency exchanges at the end of January. Investors who do not convert their virtual cryptocurrency accounts into real-name verification accounts will not be able to recharge their accounts to the Korean Won. They can only withdraw cash.

The government plans to use all real-name systems for all exchanges with cryptocurrencies such as BTC and ETH coin. However, there only the country’s four largest crypto exchanges — Upbit, Bithumb, Coinone, and Korbit — are able to offer real-name conversion services to customers. Korean media Money Today reported on September 10:

“Although the real-name certification service has been in operation for more than half a year since its launch, the conversion rate for real-name verification accounts on each exchange has only reached 40% — 50%.”

To convert an existing virtual account to a real-name authentication account, the trader must open an account with the bank that trades all the real-name conversion agreements. For example, Bithumb reached an agreement with Nonghyup Bank. So far, banks have only provided such services to the country’s four major exchanges.

After real-name verification, the user’s deposit account on the cryptocurrency exchange will match the information on their bank account.

However, the news agency explained that

“Many investors do not perform real-name authentication account conversion operations, but only invest in cryptocurrencies such as bitcoin currency that has already been deposited in exchange.”

2. The bank will limit the services of the uncompleted real-name conversion account

A bank official told the news media that customers who continue to use virtual cryptocurrency accounts instead of real-name certified accounts face the higher risk of money laundering. He added that banks are now taking urgent steps to increase real-time account conversion rates.

According to the banking industry, banks are demanding that cryptocurrency exchanges using real-name conversion services urge users who have not completed account conversions to act quickly. The news media pointed out that the bank’s policy is to “improve the transparency of virtual currency transactions, the most important thing is to prevent money laundering incidents like dash coin.”

“The bank will take steps to limit the service unless they (the customer with the virtual account) convert the account to a real-name authentication account before a certain date. After a certain point in time, if the new real-name authentication account is not generated, the account will be considered The Korean Won recharge/cash service has some restrictions.”

The media added that

“It is expected that the restrictions will be implemented as early as November.”

3. Exchange efforts

According to news reports, in order to encourage users to use real-name accounts, Bithumb has reduced the daily withdrawal amount of those accounts that have not completed the real-name conversion by 10%. The exchange also plans to take additional measures for users who do not perform real-name authentication account conversions.

Upbit, an exchange supported by kakao, has also been encouraging users to convert real-name authentication accounts. Last month, the exchange organized an event to award a total value of 100 million won (approximately 88,615 USDT coin) to 100 users who converted during a specific time period.