South Korea Investigates $600-M Illegal Cryptocurrency Trade

Jan 31, 2018 at 10:16

South Korea is probing roughly $600-million worth of illegal cryptocurrency foreign exchange trading uncovered a day after the government started implementing real-name trading system for cryptocurrencies.

In a statement, the Korea Customs Service (KCS) reported a total of 637.5 billion won foreign currency crime using cryptocurrency.

Of the total, 472.3 billion won were illegal foreign currency trading, 164.7 billion won covered overseas accounts of foreign deposits and 500 million won from one property.

Asia’s fourth largest economy has intensified its crackdown on illegal foreign currency withdrawals due to the increase in virtual currency speculation.

“In the future, the KCS will investigate illegal foreign exchange transactions and money laundering charges against foreign exchange operators or virtual currency buying agents,” it said. KCS said it will also “continue systematic and continuous crackdowns such as import and export companies report imports at a low price and conduct a detailed analysis on the act of portraying tariffs or using virtual currencies as trading funds for smuggled tobacco, drugs and other illegal goods.”

On Tuesday, South Korea launched the real-name trading system for cryptocurrencies, preventing anonymous virtual accounts in digital currency trading.

The move is also part of government’s latest measures minimize speculative investment amid fears that a cryptocurrency bubble would burst.

Yonhap News Agency reported about 3 million people in South Korea are into cryptocurrencies trading.