South Korea requires real-name bank accounts for crypto trading to prevent fraud and money laundering. Only citizens with residency can use it. Foreigners are locked out. Here's how it works and who can access it.
Real-Name Bank Account: Why Crypto Exchanges Require Your Identity
When you sign up for a crypto exchange, they don’t just ask for your email—they want your real-name bank account, a financial account tied to your legal identity, verified by government-issued ID. Also known as verified bank account, it’s the gateway to buying, selling, and withdrawing crypto legally in most countries. This isn’t about surveillance—it’s about survival. Without it, exchanges risk fines, shutdowns, or being blocked by regulators entirely.
Most major platforms like Binance, Coinbase, and Kraken now require a real-name bank account, a financial account tied to your legal identity, verified by government-issued ID because of global anti-money laundering rules. The KYC crypto, Know Your Customer process that confirms your identity before allowing crypto transactions isn’t optional—it’s enforced by the FATF, the EU’s MiCA, and agencies like the SEC. If you try to deposit from an unverified account, your funds get frozen. If you withdraw to an unlinked wallet, the exchange may block you. This isn’t just policy—it’s law.
Some countries go further. In Namibia, a country where banks freeze crypto-linked accounts and only three firms are licensed to handle virtual assets, even having a real-name bank account doesn’t guarantee access to crypto. In Qatar, a nation that bans crypto trading but allows tokenized real estate, your bank account might be clean, but you still can’t legally buy Bitcoin. Meanwhile, places like the Philippines are cracking down on unregistered platforms, forcing users to prove their identity just to trade. Your real-name bank account is no longer just a payment method—it’s your crypto passport.
But here’s the catch: not every platform plays fair. Scam exchanges like TokenEco and BIJIEEX pretend to need your bank details to "verify" you—but they’re just fishing for your login info or stealing funds. Legit platforms use secure third-party services to verify your ID. They don’t ask for your password. They don’t send you links. And they never pressure you to hurry. If it feels sketchy, it is.
What you’ll find below are real stories from people who got burned—by fake airdrops, banned exchanges, or accounts frozen because their bank didn’t recognize crypto. You’ll see how countries like Norway limit mining to protect energy, how El Salvador’s Bitcoin experiment fell apart, and why privacy coins are vanishing from exchanges. This isn’t theory. These are the consequences of skipping verification—or trusting the wrong platform.