The Financial Services Commission of South Korea (FSC) will ban digital asset service providers from operating domestically with anonymous cryptocurrencies. Coins such as Zcash, Monero, and Dash may be affected by restrictions.
The amendments will come into force in March 2021. It is developed as part of guidelines under the Special Payments Law, which deals with the legality of using cryptocurrencies in South Korea. Such measures are taken due to difficulties for the authorities to track the transactions associated with them.
Also, the Commission will require cryptocurrency exchanges to use the KYC / AML policy and report on their activities. Service providers will be required to verify real usernames.
Earlier, the country’s trading platforms began to abandon anonymous cryptocurrencies. In 2019, the South Korean bitcoin exchange Upbit warned about the delisting of six anonymous coins: Monero, DASH, ZCash, Haven, BitTube, and PIVX.
In the same year, the Korean division of the OKEx cryptocurrency exchange announced the end of support for Monero, ZCash, DASH, Horizen, and Super Bitcoin. The platform later suspended the delisting process for ZCash and Dash.
Recall that in March 2020, the South Korean parliament approved the full legalization of cryptocurrency trading. By September 2021, blockchain companies, bitcoin exchanges, and other industry participants must bring their activities in line with the new rules.