Regulator Asks Banks to Cool Cryptocurrency Delirium
South Korea’s financial regulator called on banks to act as «gatekeepers» in observing digital currency related transactions.
Last year the South Korean government said it was banning the use of anonymous virtual accounts in cryptocurrency transactions as part of increased efforts to curb speculation in virtual currencies.
With immediate effect the Korea Financial Intelligence Unit (KoFIU) and Financial Supervisory Service (FSS) has started to carry out joint investigations on six commercial banks that are offering trading accounts to cryptocurrency exchanges in Korea.
Referring to the virtual accounts held by banks and traders in cryptocurrency exchanges in the country the head of the FSS, Choi Jong-ku noted that concerns are rising as banks have kept their counsel about money flows for illegal use, instead of exercising the role of gatekeepers.
