Legal

Regulating Illegal Crypto Transactions In South Korea – Exclusive.

Several South Korean financial authorities are getting to collaborate with other agencies to combat illicit operations involving crypto assets like Bitcoin [BTC].

The interagency crackdown comes in response to growing concerns over speculative investments and potentially illegal activities amid the continued boom in cryptocurrency markets, Koo Yun-Cheol, head of the Office for Policy Coordination, revealed on Monday.

“There is a need to pay special attention to the occurrence of illicit activities employing virtual assets,” he stated at a vice ministers’ meeting on crypto, consistent with native press agency Yonhap.

As a part of the crackdown – which is slated to continue until June – the FSC [Financial Services Commission] would require native financial institutions to strengthen the monitoring of withdrawals of crypto assets. Any suspicious activity should be reported to the state-run Financial Intelligence Unit, an agency liable for investigating financial crimes.

Other regulators just like the finance ministry as well as the Financial Supervisory Service also decide to keep an eye fixed on cross-border crypto transactions, the report outlined.

South Korea has been facing strict regulation after officially imposing the Act on Reporting and Using Specified Financial Transaction Information earlier in March this year. Consistent with the law, native cryptocurrency exchanges must maintain relationships with native banks to make sure mandatory real-name account trading. The National Tax Service of South Korea has been increasing its efforts to combat evasion involving crypto, as reported earlier in March.

New regulatory developments in South Korea come amid new historic highs on cryptocurrency markets last week, with Bitcoin breaking above $64k on 14th April. Despite the record crypto prices, Bank of Korea Governor Lee Ju-yeol argued that crypto assets have “considerable limitations” as a way of payment, warning that their volatile price fluctuations pose a threat to financial stability.

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