$ 56,957
$ 2,750.2
$ 267.58
okex ads

Unearthed Report Reveals Factors Behind South Korea’s ‘18 Crypto Crackdown

A newly buried report from South Korea’s financial watchdogs has revealed the rationale behind the country’s 2018 crypto crackdown that played a featured role in ‘Crypto Winter’.

Digital Today dug up the “2017 Anti-Money Laundering Annual Report” which showed the Financial Intelligence Unit had identified more than half a million crypto transactions in South Korea in 2017 related to illegal activities.

The 519,908 crypto transactions were flagged by authorities as “suspicious” and the upswing in money laundering fuelled the national government’s decision to carry out a partial crypto crackdown in 2018.

The report took several years to be made public, despite being issued in November 2018.

According to the 2017 annual report, one of the most prominent money laundering cases involved an undisclosed crypto exchange.

The Financial Services Commission detailed that the director, nicknamed “Mr. A” in the report, transferred money from his account to other exchange accounts after having received funds from traders within the exchange’s corporate accounts.

Later, Mr. A transferred the money to his relatives’ accounts, repeating the same type of transactions, reaching a total transferred amount of tens of “trillions” of Korean Won. They reported that Mr. A ultimately managed to evade taxes in the country.

That case and others led to South Korean financial watchdogs partially cracking down on virtual assets in 2018. Based on the 2019 report, the Financial Services Commission concluded the following:

“With the rise and diversification of the financial market base due to the emergence of Kagasan Mountain and Fintech, the money laundering crime using cryptos has increased not only in quantity, but also in terms of quality, and is becoming increasingly complicated.”

As reported on March 5 that South Korea’s National Assembly passed a revised bill on the reporting and use of individual financial transaction information, focusing on the introduction of a permit system for crypto exchanges.

With the measure, virtual asset operators like exchanges should report their movements to the Financial Intelligence Unit under the Financial Services Commission, aiming to strengthen the anti-money laundering systems.

Related Posts

Leave a Reply


Subscribe To Newsletter

For updates and exclusive offers, enter your e-mail below.

Popular Posts

Hip-Hop Legend Eminem Launches Beat-Inspired Animated NFTs for Stans
April 30, 2021By
Playza Launches Decentralized Casino on TRON Network
April 30, 2021By
Blockchain Object Storage Company Filebase Raises $2M, Aims to Incorporate Filecoin and Arweave Networks
April 29, 2021By


Video Posts

Discussion Around Fintech And Financial Inclusion
April 27, 20210
Opportunities In Blockchain and Crypto Space
April 21, 20210

Crypto Stats

CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin56,957 0.35 % 7.08 % 9.61 %
Ethereum2,750.2 0.26 % 0.16 % 13.36 %
Binance Coin618.80 0.19 % 4.24 % 20.48 %
Tether1.000 0.00 % 0.11 % 0.03 %
Polkadot43.88 0.58 % 0.43 % 36.39 %
Cardano1.350 0.38 % 3.20 % 17.28 %
XRP1.590 0.41 % 14.54 % 35.41 %
Uniswap40.12 0.35 % 2.90 % 16.21 %
Litecoin267.58 0.71 % 5.47 % 5.31 %
Chainlink37.87 0.23 % 4.53 % 6.79 %