South Korea’s financial regulator, the Financial Supervisory Service, and the Finance Ministry have collaborated with several financial authorities to crack down on illegal cryptocurrency activities. It intends to fight criminal operations, including several cryptos such as bitcoin. This method wants to control money laundering and fraud connected to cryptocurrencies, as approved by the Office for Government Policy Coordination. The interagency crackdown acknowledges developing concerns over speculative investments and probably illegal activities among the ongoing boom in crypto markets.
Moreover, as a component of the crackdown, which may continue until June, the Financial Services Commission will need local financial institutions to intensify the monitoring of crypto withdrawals. The institutions should report any suspicious activity to the state-run Financial Intelligence Unit. It is an agency accountable for investigating financial crimes. Additionally, the report elucidates that other regulators such as the finance ministry and the Financial Supervisory Service also intend to keep an eye on cross-border crypto transactions.
South Korea has been implementing Strict Crypto Regulations.
South Korea has been executing strict regulation after formally imposing the Act on Reporting and Using Specified Financial Transaction Information in late March 2021. As per the law, local crypto exchanges must manage relationships with local banks to assure mandatory real-name account trading. The National Tax Service of South Korea has been expanding its efforts to battle tax evasion, including crypto, as reported in March. New regulatory developments in South Korea come amid new historic highs on crypto markets last week, with Bitcoin surpassing $64,000 on Wednesday.
Notwithstanding the growing crypto prices, Bank of Korea Governor Lee Ju-Yeol warned citizens against extreme crypto investments based on their tremendous price fluctuations, threatening financial stability. Furthermore, the South Korean government plans to publish blockchain-based COVID-19 “vaccine passports” to immunized residents to strengthen cross-border travel and keep infection risks under control. Additionally, the vaccine passports will link to a digital certification system based on blockchain technology to verify an individual’s Covid-19 status via a smartphone application from this month.
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