Korean Association Calls for Real Name Verification on Virtual Asset Accounts

by Nik Asti

Published: June 20, 2023 at 8:00 am Updated: June 20, 2023 at 6:24 am

by William Savage

Edited and fact-checked: June 20, 2023 at 8:00 am

In Brief

According to Digital Today, the Korean virtual assets exchange, VXA, issued a notice to 12 domestic and commercial banks, local banks, and internet-only banks on the 20th that they had to sign real-name confirmation accounts with virtual asset exchanges.

In a recent development in South Korea’s crypto industry, the Korean Virtual Assets Exchange Association (VXA) has requested 12 banks to implement real-name confirmation for deposit and withdrawal accounts associated with virtual asset exchanges. The request covers domestic and commercial banks, as well as local and internet-only banking institutions, according to a report by Digital Today.

Korean Association Calls for Real Name Verification on Virtual Asset Accounts

This move underscores VXA’s effort to enforce real-name account contracts with virtual currency exchanges. This is aimed at promoting fair trading practices and strengthening consumer rights protection within the burgeoning digital asset industry.

Earlier in the month, VXA issued letters to five banks which had already established real-name account contracts with Korean virtual asset exchanges. The communication urged these institutions to adopt due diligence measures aligned with those applied in current Korean won market exchanges.

The VXA, created in January this year, is a collaborative effort among representatives of ten small to medium-sized digital currency exchanges in South Korea. So, these include FLATA EX, Flybit, BTX, ProBit, APRObit, Oasis, Huobi Korea, GDAC, and Beeblock. The association seeks to address the issue of market monopoly in the encryption market.

Korean Digital Asset Exchange Association

In line with the nation’s tightening regulations on virtual asset companies, the Korean Digital Asset Exchange Association (DAXA) and five South Korean banks that provide real-name accounts for the country’s crypto exchanges will meet on June 15. They aim to discuss the standardization of real-name account services. Topics on the agenda include transfer limits, the potential allowance of corporate banking, and measures to protect user deposits. These banks include Nonghyup Bank, K Bank, Jeonbuk Bank, Kakao Bank, and Shinhan Bank.

In response to the rising incidence of crimes related to virtual currency, such as fraud, the Seoul South District Prosecutor’s Office has established a specialized coin investigative group. Moreover, the group operates as an independent entity within the FSCU, which is responsible for probing financial crimes. This initiative underlines the ongoing efforts to regulate and safeguard the crypto industry in South Korea.

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About The Author

Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

Nik Asti