Bitcoin, Cryptocurrency And Blockchain News

South Korean Authorities Uncover $600 Million in Illegal Cryptocurrency Forex Trading


According to a statement released by South Korean authorities, they have uncovered instances of illegal trading worth over $600 million. The authorities uncovered four instances involving significant quantities of funds. In the first case, they found that 53.7 billion Won had been moved from Japan to an unknown destination using crypt coins. In the second case, 472.3 billion Won had been exchanged between Australia and Korea.

According to the statement by the authorities, the illegality arose because transferring funds across international borders with the intention of avoiding fees was illegal. In the third incident, foreign currency was sent abroad as cryptocoins, and then converted and remitted to the individual. In the fourth case, the authorities discovered that a paper company, which was operating under the guise of purchasing software, received 164.7 billion Won.

After these revelations, the KCS announced that it would begin to investigate digital currency agents and forex operators to check whether they were involved in money laundering. They also wanted to see if these traders were using crypto to circumvent paying fees. The authorities will also check whether cryptocurrencies were being used to smuggle drugs. Authorities did not reveal the identities of the suspects in the press statement.

South Korea to Allow Cryptocurrency

The statement was released on the same day that Kim Dong-Yeon, the finance minister announced that he would not ban digital exchanges and cryptocurrency in the country. Instead, the authorities would focus on regulating exchanges. The country has been working to adopt cryptocurrencies after the justice ministry initially banned ICOs in 2017. The ministry of justice had also indicated that it would ban crypto completely at the start of 2018.

However, the Ministry of Finance was not in support of this move. They even released a statement, which stated,

We do not share the same views as the Ministry of Justice on a potential cryptocurrency exchange ban.

Even back then, it seemed unlikely that the government would ban cryptocurrency trading. If it had intended to do so, it would have happened on December 13th. Instead, what the government has been working to establish regulatory measures. Some of the measures included the banning of foreigners from trading on South Korean exchanges.

While most ministries in the country continue to offer support to cryptocurrencies, the government in South Korea has said that it will do its best to ensure they are not used for illegal activities. This is a positive move for the crypto sector. It shows that it is possible to regulate illegal activities around digital currency while allowing honest traders to go on with their business.

What do you think about the latest revelations by the South Korean authorities? Leave us your thoughts in the comments section below.