South Korea is to ban the use of anonymous bank accounts in crypto-currency trading from 30 January.

The widely-telegraphed move is designed to stop virtual coins from being used for money laundering and other crimes.

Local crypto-currency traders will not be allowed to make deposits into their virtual coin exchange wallets unless the name on their bank account matches the account name in crypto-currency exchanges.

South Korea has emerged as a key centre for crypto-currency trading, accounting for a fifth of global bitcoin transactions.

Today's announcement follows a string of warnings from global policy makers about crypto-currency trading, including those from South Korea's chief financial regulator last week who said the government may consider shutting down domestic virtual currency exchanges.

The regulator has previously said it will come up with detailed guidelines for local banks to properly identify its clients by their real names in crypto-currency transactions.

To make deposits into virtual coin wallets, crypto-currency traders will need to identify themselves with their real names at the exchange and have those matched with information at local banks by 30 January.

According to Bithumb, the country's second-largest virtual currency exchange, the bitcoin price in South Korea was down 4.35% at $12,567 from the previous day as of 2am (Irish time).

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