South Korea has been a player when it comes to regulating cryptocurrencies, and they have been trying to do so. Recently, Korea Customs Service (KCS) has revealed illegal cryptocurrency Forex trading worth $600 million (637.5 million won).
They have disclosed four cases of illicit forex trading. The first instance has the money transferred from Japan to an unknown from where to was transferred to another person/entity using cryptocurrencies. In the second case, funds worth 472.3 billion Korean won was exchanged between Australia and South Korea. According to money transference laws, transfer of funds between countries to avoid remittance fees is dub as illegal.
In the third case, foreign currency was sent to an overseas organization (as cryptocurrencies) which were then converted and remitted to the recipient. In the fourth case, funds worth 164.7 billion won were received by a paper company, citing ‘purchase of software’ as a cover up.
KCS has declared impeding investigation on cryptocurrency agents and Forex traders. Other factors will also undergo intense investigation like smuggling drugs using virtual currency.
South Korea has been working on adopting cryptocurrencies and will be focusing on regulating cryptocurrency exchanges. The Ministry of Justice had declared banning ICOs and cryptocurrencies by January, but this move was not supported by Ministry of Finance.
While cryptocurrency is being supported by most ministries, South Korea is trying to prevent illegal trading proceedings.