South Korean Authorities Allegedly Ready to Impose Ban on Bitcoin Trading

The fact that South Korean authorities have been looking into the cryptocurrency market and have been searching for ways to regulate it is no secret. However, it seems that now the authorities in this country reached a conclusion. Reuters reported that they are going to impose a ban on anonymous bitcoin trading.

The South Korean cryptocurrency trading market is among the largest in the world, meaning that any decision taken here could have impacts on the overall evolution of different cryptocurrencies.

According to Reuters, the South Korean government said that it issued several warnings on digital currencies and their excessive volatility, which could cause high loses for investors.

New regulations to ban anonymous accounts

Reportedly, the laws that South Korea is working on will include a halt on opening anonymous accounts for digital currencies, with the main purpose to reduce the risks of fraud and money laundering. According to the media report, authorities said that the penalties for these crimes will be the "maximum sentences possible."

Furthermore, the authorities stated that they will have the right to close exchanges when they do not comply with the law. This will allow authorities to protect potential investors on the cryptocurrency market from potential scams. This measure was in fact first proposed by the justice ministry, which recommended enhanced authority to shut down exchanges.

Another important thing to mention is that it has been reported that authorities will close all anonymous traders' accounts starting next month. This means that traders possessing such accounts will need to take immediate action.

South Korean authorities have shown a lot of interest in making sure that no illegalities are linked to the big cryptocurrency market in the country. Authorities have this month conducted a series of inspections at various bitcoin exchanges. The investigation reportedly is still ongoing.