The crypto exchange Coinpia faced problems in complying with the new regulations, especially Know-Your-Customer (KYC) policy. This policy was implemented by the Finance Service Commission (FSC) in South Korea. It implies that the platform should have an access to the clients’ personal information such as user’s full name, residence address, citizenship, birth date, photo of government issued ID, social security number, bank statement.
At the moment, South Korean cryptocurrency exchanges have to respect new laws in case they want to continue trading. Every company is compelled to comply with the KYC law. Otherwise, they will have to block their provision activities.
Due to the lack of time the exchange was forced to suspend the trading activity in order to adapt to new country’s regulations. According to the company’s Executive, the Coinpia team will start to revise the personal system in order to meet government’s requirements.
Starting from 30 January 2018, all the unknown institutions that have virtual bank accounts were restricted. The Vice Chairman of the Financial Services Commission, Kim Yong-Beom, stated that traders are not allowed to make deposits in digital accounts if the name of their bank account does not match the account name in the crypto exchange.