South Korea cracks down on anonymous bitcoin trading

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The South Korea Financial Services Commission has acted on its concern that the growing popularity and speculation in bitcoin and other cryptocurrencies would become dangerous.

The FSC confirmed through its Twitter account today that it would allow "only real-name cryptocurrency tradings" in the future. Beginning in January, anonymous cryptocurrency accounts will no longer be allowed in South Korea, while regulators will monitor the cryptocurrency exchanges moving forward.

In the days leading up to the announcement, various media outlets speculated that South Korea was going to reveal new regulations on the exchanges. The moves, which reportedly led to drops in the value of both bitcoin and ethereum, come only a few months after the country banned initial coin offerings.

The Wall Street Journal reported that South Korea's Justice of Ministry is also considering shutting down exchanges nationwide.

Previously, the FSC had pleaded with South Koreans on its website to "refrain from recklessly investing in cryptocurrency related stocks" and being wary of false or exaggerated market rumors. It also warned that "acts of spreading groundless and unconfirmed market rumors are subject to punishment."

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Bitcoin Compliance South Korea