The government of South Korea is planning to introduce strict regulations to thwart illegal operations involving cryptocurrencies in the country.
April 19, 2021 | AtoZ Markets – Several South Korean financial authorities plan to join forces to thwart illegal operations involving cryptocurrencies.
This tightening of rules comes in response to growing concerns about speculative investments and potentially illicit activities conducted during the current boom in crypto markets, explained Koo Yun-cheol , head of the Office for the Coordination of Government Policies.
” Special attention must be paid to the occurrence of illegal activities using virtual assets,” said Koo Yun-cheol during a meeting on crypto among the country’s deputy ministers.
As part of this initiative, which will continue until June this year, the Financial Services Commission will require local businesses to step up controls on cryptocurrency withdrawals. Any suspicious activity should be reported to the Financial Intelligence Unit, a government agency that investigates financial crimes.
Other regulators, such as the Ministry of Finance and the Financial Supervision Service, also plan to monitor cross-border crypto transactions.
Crypto regulations in South Korea are becoming increasingly stringent, ever since the government introduced the new law “Act on Reporting and Using Specified Financial Transaction Information” in March of this year. This legislation requires local exchanges to share user identities with banking institutions. The National Tax Service of South Korea has also stepped up its efforts to counter evasion cases involving crypto.
Lee Ju-yeol, the current governor of the Bank of Korea, has expressed distrust of cryptocurrencies \: he said that this technology has “severe limitations” as a method of payment, warning that price swings pose a threat to financial stability.
Think we missed something? Let us know in the comment section below.