South Korea’s Unregulated Crypto Transactions Reaches $4.3B in 2022

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Results from 2022 show that citizens of South Korea partook in $4.3 billion (5.6 trillion won) worth of crypto transactions without proper regulation. This comes after the tightening of licensing laws implemented by the country’s government.

According to the Korea Customs Service, the amount of economic crimes committed with crypto assets has risen considerably, skyrocketing from 3.2 trillion won in 2021 to 8.2 trillion won ($6.2 billion) in the current year. Out of the total, 70% of the illegal money trafficking activities involved digital assets.

It is estimated that only 15 transactions accounted for the $4.3 billion sum, which are said to have been done in order to buy virtual currencies from foreign markets that may be unavailable or more expensive in the local market. In this case, South Korea has isolated itself from the global crypto arena.

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In August 2022, the police apprehended 16 individuals allegedly involved in unlawful international crypto trades that totaled around $2 billion. Since 2017, trading of digital assets has been subject to approval from the Financial Services Commission, meaning that any attempts to get involved in the global crypto market without following these requirements are considered unlawful.

The same month saw the Korea Financial Intelligence Unit (FIU) take action against 16 foreign-based crypto exchanges, including KuCoin, Poloniex, and Phemex. All of them were said to be partaking in activities such as hosting promotional events for Korean customers, as well as offering credit card payment options for cryptocurrency purchases, which are all against the Financial Transactions Report Act.

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