Korean Association Advocates for Real Name Verification in Virtual Asset Accounts
In Brief
As reported by Digital Today, the Korean Virtual Assets Exchange Association (VXA) alerted 12 local and commercial banks on the 20th, mandating them to establish real-name verification accounts for facilitating transactions with virtual asset exchanges.
In a recent turn of events within South Korea's cryptocurrency landscape, the VXA has made a formal appeal to twelve banks, urging them to set up real-name verification protocols for accounts used for deposits and withdrawals via virtual asset exchanges. This appeal encompasses not just domestic entities, but also commercial and online-only banking institutions. report by Digital Today .
This initiative serves as a significant step by the VXA to enforce contracts for real-name accounts with cryptocurrency exchanges, designed to foster fairness in trading and bolster consumer rights within the rapidly evolving digital asset marketplace.
Earlier this month, the VXA reached out to five banks that had already established real-name accounts with local cryptocurrency exchanges. The aim was to encourage these banks to undertake rigorous due diligence practices consistent with those currently applied to traditional Korean won market exchanges.
The VXA, which was formed in January, represents a coalition of ten small to medium-sized digital currency exchanges from South Korea, such as FLATA EX, Flybit, BTX, ProBit, APRObit, Oasis, Huobi Korea, GDAC, and Beeblock. The association is dedicated to tackling issues surrounding market monopolies in the cryptocurrency sector.
Korean Digital Asset Exchange Association
Aligning with the country's increased scrutiny over virtual asset firms, the Korean Digital Asset Exchange Association (DAXA) and five South Korean banks that provide real-name account services to local crypto exchanges are set to convene on June 15. Their discussion will focus on standardizing these services, including topics like transfer limits, the potential introduction of business banking services, and strategies to safeguard user deposits. The participating banks are Nonghyup Bank, K Bank, Jeonbuk Bank, Kakao Bank, and Shinhan Bank.
Amid rising cases of virtual currency-related crimes such as fraud, the Seoul South District Prosecutor's Office has launched a specialized team focused on cryptocurrency investigations. This task force operates independently within the Financial Crimes Investigation Unit (FSCU) and underscores ongoing efforts to regulate and protect the integrity of the crypto industry in South Korea.
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