Attempts of South Korean authorities to fight anonymous trading in the cryptocurrency market have not yet been crowned with success. But the new initiative of the largest crypto exchanges can force traders to pass verification.

Bithumb and Coinone, major South Korean exchanges, will prohibit unverified users to withdraw fiat assets from their accounts. Bithumb will deprive its unverified corporate users of this opportunity as early as 1 October, while on 15 October, the ban will come into force with respect to individual customers. Coinone will prohibit withdrawals of fiat funds to all categories of unverified users after 15 October, as well.

This measure is aimed at meeting the requirements of the South Korean authorities to combat money laundering.

At the same time, the restriction will not affect withdrawals of cryptocurrency assets. They will be carried out, as usual, Bithumb said in a statement.

Although all South Korean crypto exchanges have to use the real-name accounts, in reality, only half of their customers verified their identity and converted virtual accounts to real-name ones. According to Money Today, although the name verification service has been in operation for more than half a year since its inception, the conversion rate to the real-name verified accounts for each exchange site is only 40 to 50%.

Currently, the South Korean financial authorities discuss possible ways to foster crypto traders to convert their virtual crypto accounts into real-name ones. One proposal supposes that banks suspend providing services to those virtual accounts. Currently, unverified accounts are not allowed only to receive deposits, while withdrawals are still being handled.