South Korean cryptocurrency exchange Coinpia has pronounced its plan to suspend both trading and deposits, a matter that has resulted in much speculation. That culminated from the fact that it was unable to move ahead with the implementation of a customer identification system. And in this particular regard it is crucial to mention the government mandate that was enacted recently.
It was on Tuesday that an announcement was made disclosing the fact that the exchange had moved ahead to suspend the Korean won deposits. The move was in a bid to get it to comply with the latest regulation which was being enforced by the South Korea’s watchdog Finance Service Commission.
A lot is changing in the overall scene and the new regulations are such that all cryptocurrency investors situated in South Korea will be compelled to use the bank accounts and real names to proceed with their trading activities.
The company’s spokesperson opined, “However, Coinpia reports it continues to struggle with the integration of identity verification into its existing exchange system. As such, the company has to halt trading to comply with anti-money laundry and know-your-customer rules.”
It is now a week down the line since the new regulation in South Korea swung into effect. One notable aspect is the fact that it is probably the first trading suspension among Korean exchanges. The country shocked many after it made the demand that they needed to upgrade their trading systems.
Coinpia was recently one of the eight cryptocurrency exchanges in South Korea that was charged by the Korea Communications Commission a fine of about $131,000 over claims that it was lacking in terms of setting in place sufficient users privacy protection in its system.
The move by South Korea’s financial watchdog to come up with a deadline to bar the anonymous cryptocurrency trading accounts within the borders of the country is a matter that has sparked about debates among quite a significant number of people following up on the matter. There is also a plan to set up an anti-money laundering guideline for the various cryptocurrency exchanges and thus it will be possible to stay aware of any potential illegal activity.