While the cryptocurrency industry has been steadily increasing in popularity as of late, it is also true that a lot of people simultaneously feel threatened by it. This is certainly the case when it comes to South Korea, a country that has made its feelings on cryptocurrency clear in the past. Like other nations such as Turkey, South Korea is also not a big fan of crypto.
It is with this in mind that the nation’s chief financial regulator has formed various teams all over the country just in the past week. These teams are to keep a close eye on all crypto-related things that occur within South Korea. Furthermore, a number of local financial and regulatory authorities are also going to offer their services in a continued effort to fight against illegal activities which may be using cryptocurrencies such as Bitcoin.
Interagency crackdown commences
An interagency crackdown will take place as an answer to increasing concerns regarding the potential for illegal activities and speculative investments that can take place as the utilization of cryptocurrency rises globally.
Koo Yun-Cheol, the Office for Government Policy Coordination’s head, had stated earlier today that there is a particular need for the government to give special attention to the occurrence of various illegal activities which are taking place in the country via digital assets. This comment had been made during a meeting regarding cryptocurrency in South Korea on how to best handle the situation going forward.
As per the instructions laid out for the crackdown, which will continue until later this year (most likely till June), the Financial Services Commission shall be forcing various local institutions to further bolster the tracking of any withdrawals and deposits made using cryptocurrencies. As such, these institutions are to report any and all suspicious trading activity to the Financial Intelligence Unit. This unit shall be primarily responsible for all investigations involving financial and economic crimes. In related news, regulators such as the finance ministry as well as the Financial Supervisory Service will also be offering their assistance as they keep watch on cross-border transactions which utilize crypto.
Crypto exchanges to maintain a working relationship with local banks
South Korea has been experiencing a lot of strict regulations lately following the Act on Reporting as well as Using Specified Financial Transaction Information, which had been made official towards the end of last month. In accordance with this, the local cryptocurrency exchanges will be required to form and sustain working relationships with the local banks in an effort to make sure that compulsory real-name account trading is maintained. Efforts to ensure that citizens do not avoid paying taxes through the use of crypto are also being carried out by the National Tax Service.
Ultimately, South Korea believes that cryptocurrencies pose a threat to national financial security and must be regulated, if not banned, should there be a reason to.