South Korean crypto exchange Coinpia suspends deposits and trading
Korean Won deposits are currently unavailable. There is no indication of if or when services will resume.
South Korean cryptocurrency exchange Coinpia has disabled deposits and suspended trading on its platform as a result of new legislation against anonymous accounts, according to an announcement on its website.
It appears Coinpia never had any customer verification or identification systems in place. However, Coinpia said it is in the process of upgrading internal infrastructure to accommodate the new AML guidelines.
Korean Won deposits are currently unavailable. There is no indication if or when services will resume.
The exchange said it was forced to shut down after it had “decided that stable service was not guaranteed”.
“I think we should, of course, make sure that this kind of verification and linking of personal identification system is in place,” a spokesperson for Coinpia said as part of the company’s online statement.
South Korea’s Financial Services Commission (FSC) recently implemented anti-money laundering guidelines with the underlying goal of only allowing accounts with a users’ real name to be used when trading crypto.
Under the new rules, any users that wish to make valid cryptocurrency transactions must hold accounts under their real names at the same banks where cryptocurrency exchanges open their accounts. Those who disregard these regulations won’t be able to make new deposits into exchanges’ accounts, only withdrawals.
These guidelines came into effect on January 30, 2018. Any existing “virtual accounts” – anonymous accounts widely used to trade cryptocurrencies – are no longer acceptable. Additionally, individuals under the age of 18, as well as foreigners, will not be permitted to use such accounts to trade crypto on local Korean exchanges.
The new protocols also require a high level of due diligence on behalf of South Korea’s financial institutions.
In January, reports surfaced that the South Korean government was planning to enforce corporate tax policy on local cryptocurrency exchanges from the end of March 2018. Additionally, the FSC fined eight domestic crypto exchanges, including Coinpia, for having ‘very weak” personal information protection policies.