Several financial authorities in South Korea are planning to join forces to combat illegal transactions involving cryptocurrencies such as Bitcoin (BTC).
The interagency crime is a response to growing concerns about speculative investment and potential illegal activity amid the ongoing boom in cryptocurrency markets, Ko Yong Chol, head of the Government Coordination Office, said Monday.
According to local news agency Yonhap, he said at a meeting of the Deputy Minister of Cryptocurrencies: “It is necessary to pay special attention to the occurrence of illegal activities using virtual assets.”
As part of this measure, which is expected to last 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’s Financial Intelligence Department, the agency responsible for investigating financial crimes.
The report notes that other regulators such as the Treasury and Finanstilsynet are also planning to monitor cross-border cryptocurrency transactions.
South Korea was subjected to strict regulation following the formal legislation of the Law on the Reporting and Use of Certain Information on Financial Transactions at the end of March 2021. The exchange of local digital currencies is required by law to maintain relationships with local banks in order to enforce mandatory trading on their true behalf. Accounts. As reported in March, South Korea’s National Tax Administration has stepped up efforts to tackle tax evasion associated with cryptocurrency.
New regulatory changes in South Korea come amid all-new highs in the cryptocurrency markets last week, when Bitcoin crossed $ 64,000 on April 14th. Despite record cryptocurrency rates, Bank of Korea Governor Lee Joo-yeol argued that cryptocurrencies have “big limits” as a method of payment, warning that volatile price fluctuations pose a threat to financial stability.