S.Korean Banks Discuss Real-Name Accounts, Impose New Crypto Limits

• South Korean banks and exchanges discuss standardizing real-name accounts.
• The daily deposit limit for non-face-to-face bank accounts for virtual assets is reduced to 5 million won.
• Measures will be enforced to strengthen oversight and prevent money laundering.

According to a local report, South Korean banks and crypto exchanges convened on Wednesday, June 14, to hold private discussions regarding the standardization of real-name accounts and the implementation of tighter regulations. As a result, a significant reduction in the daily deposit limit for non-face-to-face bank accounts used for virtual asset investments was implemented.

While the current daily deposit limit for such accounts is 10 million won, or around $7,800, the consensus reached during the meeting suggests reducing the limit by half to 5 million won. On the other hand, customers who complete the necessary identity verification and provide written oaths will retain the existing deposit limits of 100 million won, or roughly $78,300 per transaction, and 500 million won daily.

Similarly, the withdrawal limit from regular accounts will be capped at 100 million won per transaction and 500 million won per day. Once finalized and approved by regulatory authorities, the source noted that this new standard is expected to alleviate concerns for crypto exchange Korbit, which had previously expressed worries about the deposit limit.

The discussions were attended by representatives from five banks that provide real-name accounts to exchanges and the Digital Asset Exchange Association (DAXA). The key topics addressed during the meeting also included the feasibility of firm banking and methods to safeguard user deposits.

Furthermore, the report noted that banks would enhance their oversight of customers engaging with crypto exchanges to prevent money laundering and to manage high-risk customers more effectively. Measures will also be implemented to strengthen suspicious transaction reporting for excessive withdrawals and ensure mandatory fund source explanations.

In a related development, the South Korean regulator is holding back Binance’s acquisition of one of the country’s leading crypto exchanges, Gopax, due to US regulatory constraints.