Financial authorities of South Korea have announced that they will fine those cryptocurrency traders who continue to use anonymous virtual accounts, while the presidential administration dismissed rumors of the planned ban of crypto-exchanges.

Сrypto-traders in South Korea are obliged to pass verification and reveal their real identities, ceasing to use anonymous virtual accounts within this month. Otherwise, according to the legislation of South Korea, they may face punishment including either imprisonment or large fines. According to the national financial legislation, revised in 2014, those citizens who effectuate financial transactions using false names or pseudonyms may face a prison sentence of up to 5 years or a fine of up to 50 million won ($ 47,000).

The penalties for cryptocurrency traders has not yet been determined, however, as Yonhap news agency recalls, in 1993 violators of a similar law were fined up to 60% of their financial assets.

On 8 January, financial authorities of South Korea began checking six major banks on compliance with anti-money laundering legislation with an eye on virtual accounts related to cryptocurrency transactions.

Meanwhile, the rumors on the possible crypto-trading ban were dismissed by the administration of the president of South Korea. According to the statement, stated by the press secretary of the South Korean president, in the near term it is not planned to impose a ban on cryptocurrency trading.

The official statement says that the target, created under the government of South Korea, will consider the proposal of the Ministry of Justice, finalize it and prepare a package of practical norms for the development of the cryptocurrency market, and not its limitations.

"First, the government of South Korea will continue to struggle with anonymous accounts used for cryptocurrency trading and will punish market manipulations, money laundering, and fraudulent operations with investigations in which local law enforcement agencies and financial authorities will participate.

Second, the proposal to ban cryptocurrency trading was made by Justice Minister Park Sang-ki on 28 December in order to counter speculations on the cryptocurrency market. The proposal will be discussed and finalized by our target group, in which the Ministry of Strategy and Finance, the central bank, the Commission for Regulating Trade Operations and other agencies take part.

Third, excessive speculations and fraudulent actions will be met with all our seriousness. But the government will support and even finance the development of blockchain technology," the administration's statement reads.