The South Korean government has finally decided to go ahead with its plan to ban any and all privacy-focused digital currencies as part of its mission to stop money laundering in the country.
A report by CPO magazine revealed that Monero, Dash, Zcash and other coins that add another layer of anonymity to transactions will not be sold on state exchanges after March 21, 2021..
The State’s Financial Services Commission (FSC) explained that the main reason driving the ban was the frequent use of privacy currencies, dubbed « dark coins », for money laundering, ransomware attacks and other fraudulent activities..
The new law is in addition to the current Private Payments Act, which is a comprehensive coding regulation that was approved last March.
The mainstream cryptocurrencies are not completely anonymous. For currencies such as Bitcoin, the wallet addresses that participate in the transactions are announced along with the amount. In the event of an investigation, law enforcement and other relevant authorities can use this information to track transactions back to the cryptocurrency exchanges where they were made, and wallet holders in turn can be identified by the email address that was used to record the exchange account or by personally identifiable It was used to access it.
On the contrary, privacy coins have a third-party process that hides these transaction logs, making it difficult for law enforcement to conduct their investigations..
Although the provisions of the Crypto Money Laundering Act will not be in effect for another three months, some cryptocurrency exchanges in South Korea voluntarily dropped certain types of privacy currencies over a year ago.. Crypto giant OKEx was one such exchange, which made headlines when it dropped five privacy coins last September 2019 due to concerns that dealing with it was a potential violation of the Financial Action Task Force (FATF) travel rule.. .
Other large exchanges in the country have since followed suit, however, and a few smaller crypto exchanges are still offering coins for privacy..
The Financial Services Commission clearly stated that it aims to eliminate « all forms » of anonymity when it comes to the use of coins within the country. South Korea has been famous for its love of cryptocurrency since 2017, however, public sentiment began to deteriorate in 2019 after the issue of Nth Room, an underground club that was creating and harboring violent sexual content along with child pornography.. The club has accepted payments in privacy currencies and will later grant access through Telegram.
Bitcoin, cryptocurrency exchange, Monero, South Korea, DASH, financing
World News – GB – South Korea bans dealing in private currencies | Currency List. I am
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