South Korea experienced approximately $4 billion in unreported crypto transactions In 2022 

The funds were mainly intended to buy internatiaonal crypto assets for resale on the local market.

According to local sources, South Korean people engaged in $4.3 billion (5.6 trillion Korean won) in ‘illegal’ cryptocurrency trading in 2022. The government has paid particular attention to such monetary transactions in light of the increasing licensing requirements.

On March 7, local media outlets reported the data given by the Korea Customs Service. According to Customs, the total amount of cash seized in economic crimes climbed dramatically from 3,2 trillion won in 2021 to 8,2 trillion won ($6.2 billion) in the previous year.

Around seventy percent of the illegal money activity collected by the officers consisted of crypto transactions. Yet, the whole quantity of digital assets seized ($4.3 billion) is attributed to just 15 trades. The transactions were intended to purchase international virtual assets with the idea of reselling them in the country since the South Korean regulatory environment isolates the local market and raises the pricing of foreign cryptocurrencies for clients.

In August 2022, Korean Customs reported capturing 16 individuals engaged in about $2 billion in unlawful foreign currency operations using crypto assets. Beginning in 2017, the Foreign Exchange Transactions Act of Korea requires firms engaging in cryptocurrency transactions to get regulatory clearance from the Financial Services Commission. So, efforts to engage in the global crypto trade, whether by foreign players entering the Korean market or by Korean investors seeking a more advantageous exchange rate outside, are deemed “illegal.”

In the same month, the Korea Financial Intelligence Unit (FIU) initiated action against 16 overseas crypto businesses, including KuCoin, Poloniex, and Phemex. The sixteen exchanges have reportedly participated in commercial operations aimed at domestic customers, including creating websites in the Korean language, hosting promotional events aimed at Korean consumers, and enabling credit card payment alternatives for cryptocurrency purchases. All of these acts are covered under the Financial Transactions Report Act.

Also Read: U.S. Legislators To Reintroduce Crypto Tax Reform Legislation