Officials in Seoul want to close virtual coin exchanges and plan to ban anonymous cryptocurrency accounts. The Asia nation has fueled demand for digital currencies.
The South Korean government said it is banning the use of anonymous virtual accounts in cryptocurrency transactions as part of efforts to curb speculation in virtual currencies.
Minister Hong Nam-kisaid the government «can't let this abnormal situation of speculation go on any longer,» speaking after a meeting of vice ministers from related ministries.
Under the measure, only real-name bank accounts and matching accounts at virtual currency exchanges can be used for deposits and withdrawals, while the issuance of new virtual accounts to cryptocurrency exchanges will be banned, Hong said.
Regulators Grappling
In September, the Financial Services Commission in Seoul announced initial coin offerings, or ICOs, were to be banned, saying trading of virtual currencies needed to be tightly controlled.
Asian investors in general are more keen on cryptocurrencies than the rest of the world, with Japanese, Korean and Chinese investing heavily in bitcoin and other cryptos. Singapore's financial regulator meanwhile warned investors against spending money on cryptocurrencies.
Standpoint Research predicts that eventually 300 million people will try to get their hands on a few million bitcoin. Founder Ronnie Moas, who predicted bitcoin’s meteoric rise, believes the overwhelming supply and demand imbalance will drive the price higher.
