South Korea to ban cryptocurrency traders from using anonymous bank accounts

UNTV News   •   January 23, 2018   •   2923

FILE PHOTO: A man walks past an electric board showing exchange rates of various cryptocurrencies at Bithumb cryptocurrencies exchange in Seoul, South Korea, January 11, 2018. REUTERS/Kim Hong-Ji/File Photo

SEOUL (Reuters) – South Korea will ban the use of anonymous bank accounts in cryptocurrency trading from Jan. 30, regulators said on Tuesday in a widely telegraphed move designed to stop virtual coins from being used for money laundering and other crimes.

The measure comes on top of stepped up efforts by Seoul to temper South Koreans’ obsession with cryptocurrencies. Everyone from housewives to college students and office workers have rushed to trade the market despite warnings from global policymakers about investing in an asset that lacks broad regulatory oversight.

The bitcoin price in South Korea extended loss following the latest regulatory announcement, down 3.34 percent at $12,699 as of 0409 GMT, according to Bithumb, the country’s second-largest virtual currency exchange.

Bitcoin BTC=BTSP slumped nearly 20 percent last week to a four-week low on the Luxembourg-based Bitstamp exchange, pressured by worries over a possible ban on trading the virtual asset in South Korean exchanges. In Tuesday afternoon trade, it was up 5.4 percent at $10,925.

Policy makers around the world are calling for tougher, coordinated regulation of cryptocurrency trading. South Korea’s chief financial regulator last week said the government may consider shutting down domestic virtual currency exchanges.

South Korea’s Presidential office has clarified that an outright ban on trading on the virtual currency exchanges is only one of the steps being considered, and not a measure that has been finalized.

“The government is still discussing whether an outright ban is needed or not, internally,” a government official who declined to be named said after Tuesday’s briefing.

Over the past month, government statements have underscored differences between the Justice Ministry, which has pushed for a more hardline approach, and regulators who have shown a reluctance to enforce an outright ban.

Starting Jan. 30, cryptocurrency traders in South Korea will not be allowed to make deposits into their virtual currency exchange wallets unless the names on their bank accounts matches the account name in cryptocurrency exchanges, Kim Yong-beom, vice chairman of the Financial Services Commission told a news conference in Seoul.

“Everyone knew this was coming, as the government already said they will enforce the real-name system before. Rather, I can see this as a chance to go in, not out. I don’t see any reason to take my money out,” said a local bitcoin investor who only agreed to be identified by his family name Ahn.

The regulator has previously said it will come up with detailed guidelines for local banks to properly identify its clients by their real names in cryptocurrency transactions.

To make deposits into virtual coin wallets, cryptocurrency traders will need to identify themselves with their real names at the exchange and have those matched with information at local banks by Jan. 30.

Reporting by Cynthia Kim; Additional reporting by Dahee Kim; Editing by Sam Holmes & Shri Navaratnam

DOF warns public vs bogus cryptocurrency platform

Robie de Guzman   •   May 20, 2020

MANILA, Philippines – The Department of Finance (DOF) has warned the public against an article alleging that the Philippines is creating a platform for its citizens to invest in cryptocurrency.

In a statement, the DOF said the article claiming that the government has created a platform called “Bitcoin Lifestyle” is fake news.

“There is no such effort by the government,” Finance assistant secretary Antonio Joselito Lambino II said.

“We categorically deny that there is such a move, and warn the public against potentially harmful financial transactions with those behind the article,” he added.

The DOF said the fake news article also stated that President Duterte is “urging all citizens of the Philippines to learn about the platform to get involved.

The article also claimed that the “tax revenues will be huge and will benefit all citizens” and “will go to the financing of Philippines’ retirement and to counteract the crisis of learning support services.”

“This is false. We urge the public to exercise caution in their investments, and to keep their expectations of returns realistic,” Lambino said.

The Finance official also urged the public to report similarly suspicious investment schemes to the Enforcement and Investor Protection Department of the Securities and Exchange Commission (SEC), with telephone number 8818-5704.

“We warn unscrupulous individuals and groups attempting to lure the public into unauthorized and deceptive investment schemes that the government is monitoring the public space for such schemes, and will take appropriate legal and regulatory action,” he added.

Gordon on money laundering issue: ‘Mr. President, you are being misled by your people’

Aileen Cerrudo   •   March 10, 2020

Senate Blue Ribbon Committee chairman, Senator Richard Gordon believes that President Rodrigo Duterte is being “misled by his own people” regarding the alleged money laundering in the Philippine Offshore Gaming Corporation (POGO).

“Mr. President, you are being misled by your people. You better check. You’re a lawyer as well, most respectfully,” he said.

On Monday evening (March 9), Duterte said he was not convinced with the money laundering allegations against POGO operations in the country.

“I wish the President wouldn’t make remarks like that especially since a co-equal branch of government is investigating a very, very serious situation where hundreds of millions of dollars are coming into our country,” Gordon said.

According to Gordon, the President should listen to the Senate because of the clear evidence collected from their investigations.

During the Senate hearing last week, the Anti-Money Laundering Council (AMLC) revealed that P14 billion out of the P54 billion worth of POGO transactions from 2017 to 2019 were linked to “suspicious activities.” —AAC (with reports from Harlene Delgado)

Gordon reveals he was offered P25-M bribe to stop POGO money laundering probe

Aileen Cerrudo   •   March 10, 2020

Senator Richard Gordon revealed Tuesday (March 10) that someone attempted to bribe him with P25 million so he would drop the investigation on the alleged money laundering through the Philippine offshore gaming operations (POGO).

Gordon, who is also the chairman of the Senate Blue Ribbon Committee, said a friend told him that a certain Rodriguez group allegedly offered a donation worth P5 million to the Philippine Red Cross.

They also offered to give the senator P20 million just to stop the public hearing of the Senate Blue Ribbon Committee on the alleged money laundering through POGO.

“Sabi ko, hindi ko ginagawa iyan, (I told them I don’t do that)” Gordon said during an interview with reporters. “I am chagrined. Ang lalakas ng loob ng mga ito na akala nila lahat kaya nilang bilhin (They are very confident to think that they can buy everything).”

The senator also said the bribery attempt only showed that the said family may have been involved in illegal activities.

Gordon added that bulks of money continue to enter the country. He reported that USD 500 million reportedly entered the country on Tuesday (March 10).

Meanwhile, Gordon reiterated they will continue the investigation on the money laundering allegations on Thursday (March 12).—AAC (with reports from Harlene Delgado)

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