South Korea bans transactions with addresses without KYC

South Korea, as one of the first countries that took seriously the regulation of the crypto market, plans to ban all transactions with addresses without KYC from March 2022.

Perhaps there are some subtleties and peculiarities, but in practice it looks like this:

  • You have an account on an exchange and want to withdraw coins to an external address. You will have to sign a message in blockchain that this is your personal address and you will use only this address from now on. If it is another exchange, you will also have to confirm this address for the exchange.
  • You want to make a transfer to the exchange from an external address. The exchange will not accept your coins until you confirm that this address belongs to you.
  • About consequences and possibilities of monitoring in such future judge for yourself.

The description is simplistic, but this is roughly what the FATF is preparing for the entire crypto sector as it gradually implements its anti-crime and anti-money laundering strategy.

The trend of mandatory KYC is becoming a common practice on popular exchanges lately, as they have to cooperate with the governments of the countries where their clients reside. Already today on most exchanges you can only make trades if you have a minor account balance.

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