SEOUL -- South Korea will introduce measures to curb criminal activity and overheated speculation related to cryptocurrencies, including a ban on minors and nonresidents from setting up trading accounts, and a ban on banks from holding or accepting such currencies as security for financial transactions.
The Prime Minister's Secretariat said Wednesday that the new rules are aimed at protecting holders of virtual currencies from cybercrimes, and at cooling speculation. Bills to implement the measures will be drafted soon, the secretariat said.
Banks will be banned from purchasing or holding cryptocurrencies, or investing in businesses handling them. The secretariat called on banks to strictly screen adults when they withdraw or deposit money.
The secretariat said the measures are aimed at protecting users who lack sufficient knowledge from incurring losses, and preventing cryptocurrency exchanges from becoming places of speculation.
It said that in 2018, the government will start requiring cryptocurrency exchanges above a certain size to have certification of compliance with international information security standards.
South Korea recently saw a rash of crimes involving cryptocurrencies, including individual holdings being stolen through unauthorized access to accounts.