The government of South Korea plans to require cryptocurrency exchanges to share users’ transaction data with banks, in a potential move to impose taxes on the transactions, an official at financial authorities said on January 21.
Financial authorities currently banned opening anonymous cryptocurrency accounts until banks install a system that ensures only real-name bank accounts and matching accounts at cryptocurrency exchanges to be used for deposits and withdrawals.
Banks are expected to introduce the system, which will require cryptocurrency exchanges to share users‘ transaction data with banks, late this month or early next month, according to the official.
Under the law, banks are obliged to check whether cryptocurrency exchanges comply with the requirement, the official said. In a measure of tax enforcement for cryptocurrency investors, the government can access users’ transaction data via banks.
Recently, we have reported that cryptocurrency investors in South Korea will be fined for refusing to convert their virtual accounts into real-name ones.