After yesterday's announcement on cracking down of Korean exchanges, Shinhan Bank (one of largest if not top 5 bank) has closed its 'digital account' system.
What is this 'digital account', you say?
Most companies have couple bank account numbers associated with its name. For an exchange, where millions of dollars deposits and withdrawals go through everyday (or even hours), it's impractical to manage this under single or couple account numbers.
So banks bang out what's called digital account numbers attached to the exchanges' main account.
Because it is limitless in number, every Korean exchange user is provided with their own digital account number for them to deposit KRW in.
This, now has become a problem for the govt because it is difficult to keep track of how much money is being deposited.
Thus, govt pressure on banks to cease providing this digital account number system to exchanges have begun.
First one to kneel to the pressure is Shinhan Bank.
image credit: yonhap news
This triggered a wave of boycott movement from crypto users, but as you prolly know, it's a pebble drop in a lake.
There are, of course, still many other banks that are still functioning with Korean exchanges but once couple more succumb to pressure, it's only a matter of time Korean side of cash flow is halted to a minimal amount...
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Eric