| submitted by /u/Bitcoin_Bug
This week’s summary of various cryptocurrency news and developments:
Facebook CEO studying cryptocurrencies in quest for decentralization
Mark Zuckerberg, in what he called personal challenges for the year ahead, revealed that he is studying cryptocurrencies and encryption to improve the social networking service he co-founded. He noted that this year he is…
I am doing this again, because I hate seeing people get fooled over and over by these horrible news articles that are obviously preying on misconceptions by people in other cultures.
So I am here to break down exactly what the recent Rueters article is trying to do to people who don’t understand how the Korean banking system works.
Now, before I moved to Korea, I too was naïve about their banking practices. If I saw an article saying “The steps will include a ban on opening anonymous cryptocurrency accounts and new legislation to allow regulators to close virtual coin exchanges if needed” I too would be confused by misunderstanding.
But, what exactly does this mean? Opening cryptocurrency bank accounts? How does that happen in Korea? In America, I only have 1 bank account. Maybe two. And how do I open one anonymously?
What Reuters is doing, and it knows it, is failing to explain Korean banking systems in general.
So, in Korea, it is very common for businesses to open temporary bank accounts for customers. These are called “virtual bank accounts.” They are not real or tied to any specific name. “Virtual” (this is important to understand) Often, these bank accounts are open for only 24 hours, and they are anonymous. People can go to the ATM, transfer the exact amount to that account, and pay for items online. Even Gmarket allows users to do this. It is another, easy way to pay for things securely, online.
Now, Bithumb allows this as an option (one of several) in order to deposit Won into their website. These bank accounts are generated on the spot, and are only open for 3 hours. In that span, you can go to an ATM, send your Won to your anonymously generated bank account, and it will show up on Bithumb. You can also issue a “virtual” account that is linked to your actual bank account, and takes additional verification processes.
I am not sure how Korbit/Bithumb do this, but I do have a “virtual account” with them, but it is linked directly to my name, which matches exactly with my already submitted government id. I would assume that Korbit/Bithumb are already taking these measures, and have been. It could also be that the government wants to get rid of virtual accounts entirely, but I would imagine, as long as it is not anonymous, they will keep on issuing accounts. And even if these “virtual” accounts, which are not anonymous, are banned, Bithumb and Korbit will start using a system similar to Coinbase.
Here are some images to show you how these accounts are handled at Bithumb: https://imgur.com/a/BkAKP
I will say this: I had a more difficult time signing up with Bithumb than I did on Coinbase, and this was before any regulation was even mentioned in Korea. Speaking for Bithumb, I can assure you, they plan to follow every regulation, and may already have the necessary information to comply.
I can not make a virtual account anonymously. It must match my gov. id name, which Bithumb has a record of.
I can not deposit money unless it comes from a bank account registered in my name. I even had to submit a copy of the ATM receipt which matched the date and time of my deposit.
Bithumb has copies of my government identification and my passport. When I withdraw into a bank account, that account must match the same name on these documents, or my deposit will not work.
Based on this new FUD, Bithumb, and most likely UpBit and Korbit are already following these regulations completely.
Now, let’s drop the FUD ridden, 2 paragraph Reuters article, and look at some MUCH more informed pieces about this news, from Korean sources.
1.) http://english.yonhapnews.co.kr/national/2017/12/28/0301000000AEN20171228005600315.html Notice how this short article spells out clearly the regulations and ends by stating exactly won’t be affected by it. “only real-name bank accounts and matching accounts at virtual currency exchanges can be used for deposits and withdrawals, while the issuance of new virtual accounts to cryptocurrency exchanges will be banned.” So, “virtual” accounts, which are what I described above, is clearly what is being regulated. And they must match the “real name” of the users.
And we have people here claiming that no one in Korea can make a new account on any exchanges. And then they go on to say Korea is starting to shut exchanges down too.
The Korean government is saying that, IF exchanges don’t comply, they will begin enforcing it and shutting them down. They will start looking to make sure that places like Bithumb are no longer issuing virtual accounts, and requiring real-name bank accounts on their platform. Bithumb will comply. Korbit will comply. UpBit will comply. They will compete to comply quicker. These regulations are no different than what Coinbase went through.
2.) http://news.naver.com/main/read.nhn?mode=LSD&mid=shm&sid1=101&oid=008&aid=0003985407 Another Korean source which is also very clear on what the government said. It clearly states that exchanges won’t be issued “virtual” bank accounts anymore, and it will need to move to an “actual name” system. New customers must register with their actual bank accounts. It then goes a step further and explains why, stating that it would be more difficult to trace any money laundering if a temporary account was used to buy crypto.
I am not here to argue whether this is good or bad. But we have people on this sub-reddit who simply don’t understand what “banning new virtual accounts” means. And Reuters did not do it’s diligence, like the other articles I posted here, in explaining what “virtual account” means. And they know it.
Stop being fooled!
NOTE Just a daily repost because original OP Bastiat seems to be offline (due to holidays I guess). However, this is quite important as I see much misinformation on which exchanges use segwit or not.
Please upvote for awareness.
Subhan Nadeem has pointed out that:
If every transaction in the Bitcoin network was a SegWit transaction today, blocks would contain up to 8,000 transactions, and the 138,000 unconfirmed transaction backlog would disappear instantly. Transaction fees would be almost non-existent once again.
A few thousand bitcoin users from /r/Bitcoin switching to making their next transactions SegWit transactions will help take pressure off the network now, and together we can encourage exchanges/wallets to rapidly deploy SegWit for everyone ASAP. Let's make it happen. You can help by taking one or more of the action steps below.
- If your favorite wallet has not yet implemented SegWit, kindly ask them to do so immediately. In the meantime start using a wallet that has already implemented SegWit.
- If your favorite exchange has not yet implemented SegWit, try to avoid making any further purchases of bitcoin at that exchange and politely inform them that if they do not enable SegWit within 30-days they will lose your business. Sign-up for an account at a SegWit deployed/ready exchange now and initiate the verification process so you'll be ready to bail
- Help educate newcomers to bitcoin about the transaction issue, steer them towards SegWit wallets from day one, and encourage them to avoid ever purchasing bitcoin through non-SegWit ready exchanges that are harming bitcoin
IMPORTANT NOTE: The mempool is currently overflowing. If you are a long-term holder and really have no reason to move your bitcoins at this time, wait until the mempool starts to clear and transaction fees go down before moving your bitcoins to a SegWit address or SegWit friendly exchange
SELECTED TOP EXCHANGES BY SEGWIT & BATCHING STATUS
|Exchange||Segwit Status||Batching Status|
Make sure you have a SegWit capable wallet installed and ready to use for your next bitcoin transaction
|SegWit Enabled Wallets||Wallet Type|
|Ledger Nano S||Hardware|
- Core is considering prioritizing SegWit GUI in the Core Wallet and pushing out an update fast without waiting for other features
- An Exodus Wallet representative has said they will not enable SegWit for now
- Largest exchange in Brazil implemented withdraws using Segwit
- BitInfoCharts.com – Average Transaction Fees – $ 42USD per Tx
- Blockchain.info – Unconfirmed Transactions – 174K Unconfirmed Tx's
- SegWit Charts – 13% SegWit Tx's
If I'm a HODLer, will it help to send my BTC to a SegWit address now?
- No, just get ready now so that your NEXT transaction will be to a SegWit wallet. Avoid burdening the network with any unneccessary transactions for now.
Can you please tell me how to move my bitcoins to SegWit address in Bitcoin core wallet? Does the sender or receiver matter?
The Bitcoin core wallet does not yet have a GUI for its SegWit functionality. Download Electrum v3.0.3 to generate a SegWit address.
A transaction between two SegWit addresses is a SegWit transaction.
A transaction sent from a SegWit address to a non-SegWit address is a SegWit transaction.
A transaction sent from a non-SegWit address to a SegWit address is NOT a SegWit transaction. You can send a SegWit Tx if the sending address is a SegWit address.
What wallet are you using to "batch your sends"? And how can I do that?
Using Electrum, the "Tools" menu option: "Pay to many".
Just enter your receive addresses and the amounts for each, and you can send multiple transactions for nearly the price of one.
Why doesn't the Core Wallet yet support SegWit?
- The Core Wallet supports SegWit, but its GUI doesn't. The next update will likely have GUI support built-in
Why isn't a large exchange like Coinbase SegWit ready & deployed when much smaller exchanges already are? Why do they default to high fees? Where is the leadership there?
Draw your own conclusions based on their own words:
SEGWIT BLOG GUIDES
PREVIOUS DAY'S THREADS
There's lots of excellent info in the comments of the previous threads:
- Day 1: If every Bitcoin tx was a SegWit tx today, we'd have 8,000 tx blocks & the tx backlog would disappear. Tx fees would be almost non-existent once again. THE NEXT BITCOIN TX YOU MAKE, MAKE IT A SegWit TX. DOWNLOAD A SegWit COMPATIBLE WALLET AND OPEN A SegWit COMPATIBLE EXCHANGE ACCOUNT RIGHT NOW
- Day 2: I will repost this guide daily until available solutions like Segwit & order batching are adopted, the mempool is empty once again, and transaction fees are low. You can help. Take action today
- Day 3: I will repost this guide daily until available solutions like SegWit & order batching are mass adopted, the mempool is empty once again, and transaction fees are low. ARE YOU PART OF THE SOLUTION? News: Unconfirmed TX's @ 274K, more exchanges/wallets adding SegWit, Core prioritizes SegWit GUI
I love a good funny every now and then but I used to come to this sub to get quality info and news about the bitcoin core project. I love the other crypto subs , big and small, simply because they have a fair amount of news about the coin’s development and implementation and then a respectable amt of funnys. Idk if the mods will see this or if this will do anything to change the mood of the sub but I am just frustrated that we have gone so far from the true origins of bitcoin. P.s enough…
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