Many Cryptocurrency Exchanges Likely to be Forced Out

Major banks are refusing to provide real-name accounts for cryptocurrency exchanges, which can no longer do business without such accounts starting from September this year. Their refusal is because a partnership with a cryptocurrency exchange entails huge risks related to the possibility of money laundering.

Although the banks can get some commissions by partnering with and providing accounts for those exchanges, the commissions based on the account opening are less than 1 percent of their net profits.

According to the latest version of the Act on Reporting and Using Specified Financial Transaction Information, which is scheduled to become effective in September, cryptocurrency exchanges without customers’ real-name accounts can keep running their platforms but cannot conduct exchange between cryptocurrencies and money. A large number of exchanges are predicted to be forced out under the circumstances.