16 Crypto Traders Are Arrested In South Korea

While the title makes it sound like it is a bad thing, we must remember that the goal of the whole community is to help the world adopt cryptocurrencies as legitimate assets and alternatives to fiat money. 16 people were arrested in South Korea for illegal trading on foreign exchanges with the total volume of illegally traded assets evaluated at 2.7 trillion won which is close to $2 billion.
Note that cryptocurrencies are still under strict restrictions and even bans (depending on assets and types of transactions). These 16 people are charged with incompetence and illegal financial activities, and 7 of them are still waiting for the conclusion of the investigation. The charges and arrests are conducted under provisions of the Foreign Exchange Transaction Act that covers, among other topics, any operations involving cryptocurrencies and other digital assets.
Another interesting detail is that these transactions are deemed illegal because they bypass the so-called “kimchi premium”, a fee applied to any operations with foreign assets purchased in South Korea. It is a limiting restriction that does not allow people in SK to invest in highly volatile assets that may have high-return results in the short term. While it is designed to protect local investors from risks associated with such trading strategies, many people do not like it.
The country is strongly against cryptocurrencies due to the fear of money-laundering schemes allowing criminals to move funds freely. However, restrictions on crypto trading are heavily criticized by South Korean citizens. The recent election of Yoon Suk-Yeol, the 13th president, signaled the beginning of a new age for crypto trading in South Korea. The new president wants to ease regulations of cryptocurrencies, a notion that immediately convinced several huge players like Samsung Securities to announce that they will open a new exchange in the first quarter of 2023.
The financial authority of the country also decided to postpone the implementation of additional taxes for crypto traders. We need developments like this. Any illegal activities facilitated by crypto move wide adoption a couple of steps back. We just need to wait for countries to realize the value of using cryptos!
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