South Korea reports that 75% of illicit forex transactions in the country include crypto
South Korea is home to a sizeable population of bitcoin holders. The rate of cryptocurrency adoption in the East Asian country has surged drastically as the bitcoin industry becomes more popular.
However, a recent study indicates that some of these crypto transactions may be utilized for illegal activities.
According to Bloomberg, the bulk of illegal foreign exchange transactions in South Korea in 2018 featured cryptocurrency.
In addition, the data suggests that they have participated in around three-quarters of all illegal foreign currency transactions so far in 2018.
According to the South Korean Prosecutor’s Office, the government is now investigating four cryptocurrency-related crimes involving more than $1.1 billion in unlawful foreign exchange transactions.
Congressman Min Byeong Dug has been informed of several breaches of foreign currency transaction regulations by the Customs Service.
The figure is more than twice the $620 million recorded for the whole of 2021 and marks an increase of more than 70 percent compared to the previous year.
More than 75 percent of transactions that breach foreign currency restrictions include cryptocurrencies, up from 61 percent last year.
In addition to the four illegal foreign exchange transactions, South Korea is investigating instances involving $3.4 billion in atypical transactions that are believed to be tied to fraudulent bitcoin activities. Two of the country’s largest banks, according to South Korean officials, made the transactions possible.
In recent years, South Korea has emerged as a crypto powerhouse. Since the crypto craze started in 2017, more than 10% of the nation’s population has invested in digital currencies.
As of August of last year, cryptocurrency exchanges in South Korea accounted for around 10% of worldwide transaction volume, making it one of the five major cryptocurrency marketplaces.
In 2018, the Financial Services Commission of South Korea tightened the regulations regulating bank accounts for cryptocurrency exchanges. Under the new regulations, only “real-name bank accounts” are eligible for bitcoin transactions.
According to the new legislation, a client (trader) must have a bank account in their actual name at the same bank as their cryptocurrency dealer in order to withdraw or deposit money from their e-wallet.
In the meanwhile, South Korea’s crypto industry focuses significantly on the Metaverse and NFTs. The government spent around $177 million on the creation of the Metaverse industry in the United States. The government was officially the first to take this action.