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The power to issue real-name verification accounts is in the hands of banks

On November 2, the Financial Services Commission of South Korea announced a 40-day legislative notice for the amendment to the implementation rules of the Specific Financial Transaction Information Report and Use Act (referred to as the Special Fund Act) between November 3 and December 14. The implementation rules narrowed the definition of virtual asset operators and virtual assets in the "Special Fund Law", and made specific provisions on the conditions for issuing real-name verification deposit and withdrawal accounts (real-name accounts).

Regarding the conditions for the issuance of real-name accounts that have attracted much attention from the industry, the implementation rules list a total of five items, namely: ① separate management of customer pre-deposits; ② obtain information protection management system (ISMS) certification; ; ④ Separate management of customer transaction records; ⑤ To prevent money laundering by virtual asset operators, financial companies can identify, analyze and evaluate hidden money laundering risks in financial transactions and other processes according to prescribed procedures or work guidelines.

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"Issuing accounts is a private agreement" vs "The government has not shown determination to cultivate the market"

A person from the Financial Commission said, "Whether banks should issue real-name accounts to qualified operators unconditionally? We have thought about this issue a lot, but the issuance of accounts is a private agreement between the bank and customers, and it is not suitable for legal enforcement. This is an obligatory regulation", "and each bank has different attitudes towards the issuance of real-name accounts for virtual assets, and it is up to the banks to make their own judgments whether to issue real-name accounts."

However, the virtual currency industry is quite dissatisfied with this, believing that the government only considers the position of banks and ignores the needs of industry development. An industry related person said, "It is regrettable that the government has not shown its determination to cultivate the virtual currency market." "If the market wants to achieve better development, it must formulate a more complete framework."

JOIND Kwon Seona reporter kwon.seona@joongang.co.kr