South Korea plans to ban non-KYC wallets next year! Are DeFi, NFT, and DAO completely isolated?

Time:2021-12-30 Source: 1149 views DeFi Copy share

According to a report by the South Korean media "Mainichi Business News" on December 8, the South Korean government may ban users from withdrawing funds from cryptocurrency exchanges to non-KYC wallets from March 2022, which is equivalent to directly affecting Metamask and any decentralized DeFi protocol. , Or DAO. This news made Ki Young Ju, the CEO of CryptoQuant, who is a Korean, did a good job, South Korea.

Isolate non-KYC wallets and have no access to DeFi, NFT, and DAO?

At the request of the South Korean government, the country’s cryptocurrency players Bithumb, Coinone, and Korbit jointly established Code to introduce anti-money laundering solutions and formulate new travel rules to comply with the regulations of the International Anti-Money Laundering Organization (FATF).

"Daily Economic News" pointed out that Coinone CEO Myung-Hoon Cha demonstrated the function of CODE: to allow exchanges to share user information and comparisons within a few seconds, so as to quickly verify the sender and recipient information. In other words, in the future, in South Korea, the government will be very clear about the information sent and received, but Metamask, TerraStation and other wallets that do not require KYC will all be shot down.

According to the Special Act, all exchanges must comply with FATF regulations from March 25 next year, otherwise they will be forced to close their business.

Ki Young Ju, CEO of the on-chain analysis company CryptoQuant, reposted the news on his personal Twitter and said: So Koreans can no longer contact DeFi, NFT, and DAO? South Korean government: There are no exceptions. Every wallet must be KYC. Good job Korea!

South Korea's strong encryption regulation can really detain investors?

As previously reported, the South Korean government has required all local virtual asset service providers (VASP) to complete registration with the Korea Financial Intelligence Agency (KoFIU) before September 24 this year, or they will be forced to close their business.

Except for the four major exchanges Upbit, Bithumb, Coinone and Korbit, which meet the relevant conditions, the rest of the exchanges are facing the danger of closing down. At least 37 exchanges faced closure in October because they were unable to obtain operating permits.

In addition, South Korea is also known for levying a 20% cryptocurrency capital gains tax. The extremely high tax rate has made many investors frightened. After the opposition forces wrestled with the South Korean Ministry of Finance, it was successfully intervened by the Korean government and opposition members. Postponed to hit the road in 2023.

However, after all, the regulations cannot fully cover the reality. For example, Korean people may first withdraw money to international exchanges and then enter non-KYC wallets. Therefore, how the new law will be implemented is a big question mark.

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