South Korea's Regulators Target Unregulated OTC Crypto Trades amid Growing Crime Concerns
Summary:
South Korean regulators are directing their attention to the unregulated over-the-counter (OTC) crypto market due to concerns about criminal activities. They are monitoring OTC crypto trades and calling for regulation to address money laundering risks. Instances of using OTC platforms for converting virtual assets into Korean won have led to arrests and indictments. South Korea's strict crypto regulations aim to combat such crimes.
South Korean regulators are shifting their attention towards unregulated over-the-counter (OTC) cryptocurrency trades due to concerns about potential criminal activities. Financial regulators in the country are closely monitoring the OTC crypto market trades, with key officials from the Financial Services Commission (FSC) and the deputy chief prosecutor attending a session focused on virtual asset-related legal issues. During the session, the deputy chief prosecutor highlighted the need for regulation in the OTC crypto market to address money laundering risks. In particular, illegal OTC companies operating overseas and converting illicitly obtained virtual currency into Korean won or foreign currency were mentioned as a target for regulation. These OTC platforms are not officially recognized by the government. The largest regulated crypto platform in South Korea, Upbit, offers 172 cryptocurrencies, while OTC platforms provide access to up to 700 cryptocurrencies. Instances were cited where OTC platforms were used to convert virtual assets into Korean won, leading to arrests and indictments related to illegal foreign exchange transactions. The estimated value of unlawful foreign exchange transactions using virtual currency in Korea reached $4 billion (5.6 trillion won) last year. South Korea, known for its strict crypto regulations, has been actively implementing measures to tackle crypto-related crimes, especially following the Terra-Luna collapse.
Published At
9/18/2023 9:53:17 AM
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