South Korean regulators seek cooperation with their colleagues in Beijing and Tokyo to address cryptocurrency speculation. Six commercial banks targeted by Seoul authorities overseeing cryptocurrency trading. Experienced folks in Korea are helping to organize a possible trio.
Trial-And-Error to Shape Effort
South Korea Financial Services Commission, Deepens cooperation with China and Japan agencies in preventing speculative transactions. FSC Chairman Choi Jong-ku expressed that they exchanged ideas with the deputy finance minister from Asian countries during a press conference last month.. According to Yonhap News Agency, Choi aims to “establish a detailed cooperation system” with Beijing and Tokyo.. The country’s largest financial regulator briefed the press on the bank audit, which will take place with the participation of the Korean Financial Intelligence Unit, on Thursday.. Noting the “continuing fire of speculative investing,” Choi cautioned against what he called an “irrational trend” to invest in cryptocurrencies.. “Digital money only triggers side effects,” the regulator said.. A long list cited fraud, illegal fundraising, hacking, speculation and manipulation of market prices.. According to the Korean Herald, the government official left the door open to all cryptocurrency-related businesses to minimize the aforementioned effects.. Choi Jong-ku said the world is facing “an epidemic of policy challenge” and that Korea’s “trial and error” experience can help them shape tripartite arrangements.
Trust but “Verify Controllers”
South Korea’s financial regulator is currently inspecting six commercial banks, including Woori, Kookmin and Shinhan. Cryptocurrency traders’ accounts were targeted in this inspection.. Last month, authorities ordered banks to stop issuing “virtual accounts” used by cryptocurrency exchanges to manage customers’ money.. A new system will be implemented by the end of January to stop anonymous trading on users and improve real-name authentication.
The head of the FSC has issued another warning:
“Cryptocurrency currency transactions are highly susceptible to money laundering.”. He shared his concern that they remained silent about money flows for illegal uses.. The ongoing investigation should identify banks to detect money laundering and fraudulent transactions as required by law.. Choi also noted that it will take time for regulators to ramp up.. Korean authorities plan to impose stricter requirements on exchanges. Tougher sanctions for crypto-related crimes are about to arrive in a country that hosts some of the biggest providers of the crypto service. However, strong measures against illegal action will be implemented before the legislation is revised, the regulation in question was recorded by KBS Radio.
The exact sanctions that could be imposed on banks and stock markets remain unclear.. Suspension of virtual account services appears to be the only step the authorities can take now, and the head of the FSC confirms it.. Investigators will close such accounts if any illegal activity is discovered. Choi declined to comment on new plans regarding cryptocurrencies and tax evasion sanctions.
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