Korean Banks Retain Rights To Issue Accounts With Real Name Verification

In 2017, Korea introduced a real name verification account system for deposits and withdrawals. Currently, only banks in Korea issue accounts with real name verification. The Financial Services Commission held its first meeting of the Working Group on Management, Business Practices and System Improvement to discuss banking reform issues.

The meeting discussed a plan to allow securities companies to issue real name accounts for virtual assets, but the authorities ultimately concluded that further expansion of financial institutions issuing real name accounts is undesirable.

Authorities believe that institutions with sufficient financial capabilities should take charges, as securities companies have relatively low anti-money laundering capabilities compared to banks. Allowing securities companies to issue real name verification accounts for virtual assets is contrary to policies aimed at strict anti-money laundering and protection of investors associated with virtual assets.

Image: FinTech Global