Several South Korean financial authorities are planning to join forces to combat illegal transactions involving cryptocurrencies such as Bitcoin (BTC).
Ku Yun Chol, head of the Office of Public Policy Coordination, said Monday that the interagency campaign is a response to growing concerns about speculative investment and potential illegal activity in the ongoing boom in cryptocurrency markets.
“It is necessary to pay special attention to the emergence of illegal activities using virtual assets,” – said the local news agency Yonhap at a meeting with Deputy Ministers of Cryptocurves.
As part of the campaign, which will run until June, the Financial Services Commission will ask local financial institutions to strengthen monitoring of cryptocurrency withdrawals. Any suspicious activity should be reported to the Government Financial Intelligence Service, the agency responsible for investigating financial crimes.
The report notes that other regulators such as the Treasury Department and the Financial Conduct Authority also plan to track cross-border cryptocurrencies.
South Korea has faced tough regulation after enacting a law on the reporting and use of specific financial transaction information by the end of March 2021. By law, local cryptocurrency exchanges must maintain relationships with local banks to ensure that trading on a account with a real name is mandatory. … As reported in March, South Korea’s national revenue service has stepped up efforts to tackle cryptocurrency tax evasion.
The new regulatory changes in South Korea come among new all-time highs in the cryptocurrency markets last week, when Bitcoin exceeded $ 64,000 on Wednesday. Despite record-breaking cryptocurrency rates, Bank of Korea Governor Lee Joo Yeol argued that cryptocurrencies have “significant limitations” as a payment method, warning that volatile exchange rate fluctuations pose a threat to financial stability.