South Korean banks have backtracked from their choices to quit overhauling digital currency accounts as crypto financial specialists protested and the government re-talked about its policy. The nation’s 6 noteworthy banks have been informed that they should finish the first arrangement and introduce the framework that would end the anonymous trading of cryptographic forms of money.
South Korean banks have reportedly turned around their choices to quit servicing cryptographic money accounts.
“They will stick to their initial plans to allow clients to open accounts for cryptocurrency transactions using their real names within the month,” Korea Joongang Daily reported.
South Korean banks have reportedly reversed their decisions to stop servicing cryptocurrency accounts. The first arrangement has been for banks to quit issuing virtual accounts and introduce the new government-ordered, genuine name recognizable proof framework. Starting there on, they would just issue genuine (real) name accounts. This new framework is expected to be presented around January 20.
The news outlet detailed:
The country’s financial regulator has pushed banks to stop opening new accounts until they establish a way to verify that the accounts bear the real name of the customer, to prevent money laundering.
A week ago, the controllers started assessing the nation’s 6 noteworthy banks to guarantee they have satisfied their anti-money laundering (AML) commitments concerning virtual account services.
Money Today described
While the inspections will not conclude until January 16, some banks decided to pull out of servicing cryptocurrency accounts “due to strong pressure from financial authorities” and criticism that “banks are supporting virtual currency transactions,”.
A report by Korea Joongang Daily says;
The regulators then informed the 6 banks that their decisions regarding whether to service crypto accounts do not have any bearing on their obligations to install the new real-name system. As such, banks agreed to install the new system as planned. The Korean Financial Services Commission (FSC).
Investor Complaints and bank
Among the banks that chose to quit adjusting digital money accounts was Shinhan Bank. A letter with respect to this choice was quickly sent to the crypto trades right now utilizing the banks virtual accounts services, including the nation’s biggest exchange Bithumb.
Following the bank’s declaration, “some Shinhan clients – conceivably bitcoin brokers – undermined a boycott of the bank,” the publication noted.
AFTER THE NEWS WAS ANNOUNCED, INVESTORS REBELLED AND THE FINANCIAL AUTHORITIES DECIDED TO RE-DISCUSS THE POLICY WHEN THEY ASKED FOR A REAL-NAME CONFIRMATION SERVICE.
Shinhan Bank in this way switched its choice, expressing that the bank will survey its virtual account opening strategy and “will enable stores to existing virtual accounts for now,”
Korea Joongang Daily included, “Shinhan Bank told major local cryptographic money trades, for example, Bithumb and Korbit that they should think of measures to dispose of existing mysterious accounts.”
While it stays feasible for Shinhan Bank clients to store into existing virtual accounts, the government declared on Sunday that anybody doing as such would confront a fine once the genuine name framework is executed.
Is Toronto Next to Accept Bitcoin for Property Taxes?
Toronto is the biggest city of Canada with a population of more than 6 million. It’s also one of the leading global financial centers which makes it an attractive place for investors.
Bitcoin has emerged as the leading cryptocurrency in the world and attracted a lot of attention from financial investors. There are many crypto exchanges and investors in Toronto, which makes it an important destination for crypto startups and investors.
Recently, there has been a surge in usage of Bitcoin in the Real Estate world as lot of companies around the world are now accepting Bitcoin for buying and selling of properties. In April 2019, Innisfil, A town located in Ontario, at a distance of about 1 hour drive from Toronto, announced that they will accept Bitcoin for property taxes at the municipal level. In July this year, Richmond Hill announced that they are ready to accept Bitcoin as a payment method for property taxes.
Evan Kuhn, Co-Founder of a Toronto based crypto exchange Coinberry believes that integration of Bitcoin as a payment method for property taxes in Toronto can reduce cost, not only for tax payers, but for municipalities as well. Kuhn mentioned
“It doesn’t cost homeowners to use the service, and it costs the municipalities far less in processing fees”
“A credit card company charges a 3% fee,” he said. “Our fee is .5%, so that’s a lot more beneficial for the municipalities.”
He further explained the entire process to make it simple for the users and for the authorities. “When a resident makes a payment through our exchange, the company immediately converts the Bitcoin into Canadian Dollars and pays the relevant authority, so in basic concept this entire process works like a credit card system but with lower fee for both parties”
Morning Crypto Roundup
- Crypto market entered into a consolidation phase, with market cap at around $265 billion, market is currently trading in a range
- Bitcoin stays above $10,000
- Gray scale reported in a recent report that there are 7.1 million active Bitcoin users worldwide with more than 32 million Bitcoin wallets.
- After Innisfil and Richmond Hills, is Toronto next to explore an opportunity to pay property taxes through Bitcoin?
- According to a report from CryptoCompare.com, Untrusted crypto exchanges are dominating the crypto volume with more than 2/3 share