South Korea’s cryptocurrency exchange Coinzest seeks to open accounts with banks for investors, but it is unclear whether banks would allow Coinzest investors to open accounts with the exchange.
Coinzest said it has strengthened the fraud detection system (FDS) and completed the ‘know-your-customer’ (KYC) to open real-name accounts between the exchange and investors.
A Coinzest spokesman said once it completes the computer server system and its bank completes the on-site review, it could open the accounts.
However, the bank has yet to confirm whether it would open the accounts between Coinzest and investors.
In January, the Financial Supervisory Service instructed banks to open accounts only under real names for cryptocurrency investors. The instruction was to prevent money laundering through cryptocurrency accounts. Following the instruction, all banks, excluding Shinhan Bank and Nonghyup Bank, suspended opening accounts with customers.
Cryptocurrency exchanges could not accept new investors because they could not open the accounts with investors. These exchanges have repeatedly asked banks to open accounts, but banks said no until the government relaxes its current rule.
