The Wall Street Journal reports South Korea Considers Shuttering Bitcoin Exchanges.

New Proposals

New proposed legislation in Korea will ban the use of anonymous cryptocurrency accounts starting next month and prevent banks from providing settlement services for unidentified digital-currency trades on bitcoin exchanges, according to a statement from the government on Thursday.

The government also cautioned that digital currencies could be "vulnerable to the damage from investment fraud or hacking attacks on the exchanges."

Background

Last week, Youbit, a Seoul-based cryptocurrency exchange, suspended trading and filed for bankruptcy after it was hacked a second time in eight months and lost a chunk of its digital currency reserves. Investigators in South Korea are looking into North Korea's possible involvement after the exchange collapsed.

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