The measure, as yet non-mandatory, has not had any material impact on the price of bitcoin, with cryptocurrency related shares extending their gains on Friday.
On Friday, the Korea Blockchain Industry Association, a South Korean blockchain association, disclosed measures to boost transparency in trading of cryptocurrencies which have been agreed by fourteen exchanges in the country including Bitthumb, the world’s busiest virtual currency exchange.
According to the Korea Blockchain Industry Association, it would only allow users, whose identity has been confirmed via financial institutions, including banks, to transact in the virtual currency through only one account.
Further, as per its statement, only those virtual currency exchanges, who have more than $1.83 million (2 billion won) in assets would be allowed to operate.
These measures, as yet non-mandatory, will begin to be imposed from January 1, 2018, said the association for virtual currency exchanges.
“The regulations will ensure the safety of consumers and transparency in trade and are expected to be the strongest and most effective measures (regarding virtual currency exchanges) on a global scale,” reads their statement.
As per Kim Jin-hwa, one of the association’s leaders, exchanges would especially work towards identifying account users.
Analysts opine the development is unlikely to negatively impact bitcoin exchange prices to a significant extent.
“Today’s announcement is unlikely to affect the (bitcoin) price as exchanges can always decide not to follow,” said Park Nok-sun, a cryptocurrency analyst at NH Investment & Securities. “The measures are positive for sure in that they are actually trying to curb recent speculative investments.”
Following the announcement, cryptocurrency related shares in South Korea extended their gains with Vidente and Omnitel gaining by 10.3% and 3.4%, respectively.