South Korea's real-name system for cryptocurrency exchanges has been in effect for over a month, yet adoption remains sluggish. Most accounts have not transitioned to the new system, banks have not facilitated mass migrations, and the government appears reluctant to enforce strict compliance.
One Month In: Only 19% Conversion Rate
According to No Cut News, just 19% of virtual accounts have migrated to the real-name system a month after its mandatory implementation. A significant volume of crypto transactions still relies on non-compliant virtual accounts.
Exchange-Specific Rates:
- Bithumb: 15% (lowest)
- Coinone: 26% (highest)
- No banks have processed conversions for small-to-mid-sized exchanges.
Key Stat: Of 169,500 accounts, only 19% (roughly one-fifth) use the real-name system for crypto transactions.
Bank-Specific Data:
| Bank | Virtual Accounts Issued | Converted Accounts | Conversion Rate |
|-----------------------|-------------------------|--------------------|------------------|
| Shinhan Bank | 125,000 | 35,000 (28%) | 28% |
| Industrial Bank of Korea | 127,791 | 34,000 | 22% |
| Nonghyup Bank | 139,000 (Bithumb) | 90,000 | ~65%* |
| Nonghyup Bank | 100,000 (Coinone) | 26,000 | 26% |
Nonghyup Bank leads with 174,000 real-name accounts opened for Bithumb and Coinone combined.
Small and Mid-Sized Exchanges Left Behind
Implemented on January 30, the real-name system aims to eliminate anonymous crypto trading. However:
- Only three banks (Shinhan, Nonghyup, IBK) currently support it.
- Services are restricted to Korea’s "Big Four" exchanges: Upbit, Bithumb, Coinone, and Korbit.
- 25+ smaller exchanges remain non-compliant.
The Financial Supervisory Service (FSS) has acknowledged the gap and urged banks to expedite solutions.
FAQs
Q: Why is adoption so low?
A: Lack of enforcement, bank reluctance, and complexity in migration processes hinder widespread compliance.
Q: Which exchange has the highest conversion rate?
A: Coinone leads at 26%, while Bithumb trails at 15%.
Q: Are smaller exchanges affected?
A: Yes—25+ platforms lack access to real-name services, creating an uneven regulatory field.
👉 Explore secure crypto trading platforms for compliant alternatives.
Edited by Wang Yaqi
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