There are reportedly more than 100 exchanges in South Korea, most of which are not using the government’s real-name system. None of the small and medium-sized exchanges can use this system since banks have opted to only provide this service to the country’s largest exchanges.
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30% Conversion Rate
It has been over 100 days since the government’s real-name system was implemented at the end of January. However, most crypto transactions are still not made through this system. All small and medium-sized exchanges continue to transact through corporate accounts. Business Korea elaborated:
The domestic cryptocurrency market is getting more opaque as the financial authorities are not pushing banks and cryptocurrency exchanges hard toward using real-name accounts.
According to Yonhap News, the conversion rate of the real-name system is currently only 30%.
While six banks are equipped with the real-name system, KB Kookmin and KEB Hana Bank are not issuing real-name accounts to any exchanges, the publication conveyed. Shinhan Bank also has not issued them for Bithumb, citing that the exchange “has not yet implemented the recommendations of the Korea Communications Commission after the hacking incidents.”
Real-Name System Ineffective
Banks have so far opted to only open real-name accounts for the country’s biggest crypto exchanges: Upbit, Bithumb, Coinone, and Korbit.
All other exchanges are not using real-name accounts; they are still using corporate accounts for crypto trading. It has been said that the use of such accounts leads to problems such as with Coinnest whose CEO was charged with embezzlement.
However, on Friday, Upbit was also investigated by the Korean prosecutors for alleged fraud even though banks are providing the real-name service to
