South Korea Says No Plans To Ban Cryptocurrency Exchanges, Uncovers $600 Million Unlawful Trades

SEOUL (P3P) – South Korea’s finance minister mentioned the federal government has no plans to close down cryptocurrency buying and selling, welcome information for buyers fearful that authorities would possibly go so far as China’s robust motion in blocking digital coin platforms.

The remark by Kim Dong-yeon on Wednesday comes as merchants at house and all over the world have been spooked by conflicting feedback from authorities officers in South Korea, a serious hub for cryptocurrency commerce, that Seoul was planning to ban native digital coin exchanges.

“There is no such thing as a intention to ban or suppress cryptocurrency (market),” Kim mentioned, including the federal government’s instant activity is to manage exchanges.

Reinforcing Seoul’s intent to tighten the screws on a market broadly seen as opaque and dangerous by world policymakers, the nation’s customs earlier on Wednesday introduced it had uncovered unlawful cryptocurrency overseas alternate buying and selling price almost $600 million.

“Customs service has been carefully taking a look at unlawful overseas alternate buying and selling utilizing cryptocurrency as a part of the federal government’s activity pressure,” it mentioned.

South Korea has been on the forefront of pushing for broad regulatory oversight of cryptocurrency buying and selling as many locals, together with college students and housewives, jumped right into a frenzied market regardless of warnings from coverage makers all over the world of a bubble.

Seoul beforehand mentioned that it’s contemplating shutting down native cryptocurrency exchanges, which threw the market into turmoil and hammered bitcoin costs. Officers later clarified that an outright ban is simply one of many steps being thought-about, and a ultimate choice was but to be made.


Customs mentioned about 637.5 billion gained ($596.02 million) price of overseas alternate crimes had been detected.

Unlawful overseas foreign money buying and selling of 472.three billion shaped the majority of the cryptocurrency crimes, it mentioned in a press release, however gave no particulars on what motion authorities had been taking towards the rule breaches.

In a single case, an unlawful FX company collected a complete of 1.7 billion gained ($1.59 million) from native residents in a type of “electrical pockets” cash to switch it to a accomplice agent overseas. The accomplice agent then cashed them out and distributed the settlement to shoppers based mostly in that nation, in accordance with the assertion.

In South Korea, solely licensed banks and brokers can provide overseas alternate companies. Native corporations and residents who transfer greater than $three,000 in a foreign country at a time should submit paperwork to tax authorities explaining causes for the transfers. Annual abroad transfers of greater than $50,000 should even be reported with comparable paperwork.

Efficient from Jan. 30, authorities imposed guidelines which enable solely real-name financial institution accounts for use for cryptocurrency buying and selling designed to cease digital cash from getting used for cash laundering and different crimes.

Amongst different breaches, Customs mentioned there have been additionally circumstances the place buyers in Japan despatched their yen price 53.7 billion gained to their companions in South Korea for unlawful foreign money commerce.

It mentioned authorities will proceed to observe for any violations of overseas alternate guidelines or of cash laundering actions.

Bitcoin stood at $10,123.13 as of 0842 GMT on the Luxembourg-based Bitstamp alternate. The heightened regulatory scrutiny all over the world, nonetheless, has seen bitcoin dive about 27.1 % thus far this month, on observe for its greatest month-to-month decline since January 2015.

Cryptocurrencies bought one other jolt final week after Tokyo-based alternate Coincheck mentioned hackers stole over $500 million in one of many world’s greatest cyber heists.

Must read×