South Korean cryptocurrency exchange Coinpia has announced on Tuesday it will suspend trading and deposits after it was unable to implement a customer identification system in line with a recently enacted government mandate. Exchange executives said the company has to halt trading to comply with anti-money laundry and know-your-customer rules.
According to an announcement, Coinpia had suspended Korean won deposits on Jan. 30 in an effort to comply with the new regulation, enforced by South Korea's watchdog Finance Service Commission.
We have recently reported that South Korea launched a real-name trading system for cryptocurrencies, banning the use of anonymous bank accounts in transactions to prevent cryptocurrency from being used for money laundering and other illegal activities.
Opening cryptocurrency accounts has been banned for weeks while the banks have installed the system, which ensures only real-name bank accounts and matching accounts at cryptocurrency exchanges for deposits and withdrawals. Now each trader must identify himself with the help of a bank account to buy or sell a cryptocurrency.
However, Coinpia said it continues to work on the integration of identity verification into its existing exchange system.