As of Sunday, 143,300 virtual ledgers for cryptocurrency trading, or 8.21 percent of the total accounts, had been converted to real-name bank deposits, the sources said.

Currently, people can buy or sell cryptocurrencies through their virtual accounts, but they must comply with the real-name trading system if they want to pour new money into cryptocurrencies or withdraw money from these accounts.

Market watchers said people have been reluctant to convert their virtual accounts to real-name bank accounts as the prices of bitcoin and other cryptocurrencies have plunged in recent weeks.

The price of bitcoin, which traded at nearly $20,000 late last year, tanked more than 15 percent on Monday to fall below $7,000.

Cryptocurrencies like bitcoin and ethereum have rapidly gained popularity among South Korean investors hoping to make quick money.

Despite a boom in cryptocurrency transactions, the exchanges go largely unregulated in South Korea as they are not recognized as financial products, with the country having no rules for protecting virtual currency investors. (Yonhap)