Reason why South Korea is much focused on regulated use of cryptocurrency

[oegarod]

The Korea Customs Service (KCS) has revealed an investigation into illicit Forex trading practices, and uncovered $600 million (637.5 billion won) worth cryptocurrencies that were exchanged illegally in South Korea.

The statement further disclosed four instances of illegal tradings. In the first case, money was transferred from Japan to an unknown country whereby 53.7 billion won were sent to another person/entity using cryptocurrencies. In the second case, funds worth 472.3 billion Korean won were exchanged between Australia and South Korea. KCS explained that transferring funds between countries with the sole purpose of avoiding bank and remittance fees is considered illegal.

In the third case, foreign currency was sent to an overseas organization (as cryptocurrencies) which were then converted and remitted to the recipient. In the fourth case, funds worth 164.7 billion won were received by a paper company, citing ‘purchase of software’ as a coverup. KCS mentioned that it will start investigating cryptocurrency agents and forex operators for money laundering and illegal trading charges. Other areas that will undergo critical inspection include smuggling of drugs using virtual currencies. The names of the suspects were not revealed in the press release.

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[chaitanya31]

The Korea Customs Service (KCS) has revealed an investigation into illicit Forex trading practices, and uncovered $600 million (637.5 billion won) worth cryptocurrencies that were exchanged illegally in South Korea.

The statement further disclosed four instances of illegal tradings. In the first case, money was transferred from Japan to an unknown country whereby 53.7 billion won were sent to another person/entity using cryptocurrencies. In the second case, funds worth 472.3 billion Korean won were exchanged between Australia and South Korea. KCS explained that transferring funds between countries with the sole purpose of avoiding bank and remittance fees is considered illegal.

In the third case, foreign currency was sent to an overseas organization (as cryptocurrencies) which were then converted and remitted to the recipient. In the fourth case, funds worth 164.7 billion won were received by a paper company, citing ‘purchase of software’ as a coverup. KCS mentioned that it will start investigating cryptocurrency agents and forex operators for money laundering and illegal trading charges. Other areas that will undergo critical inspection include smuggling of drugs using virtual currencies. The names of the suspects were not revealed in the press release.

media articles are presenting misinformation about the actual quote.
There are great concerns regarding virtual currencies and the justice ministry is basically preparing a bill to ban cryptocurrency trading through exchanges.

Recent news also has the Ministry of Strategy and Finance with an official statement saying they do not agree with the trading ban, and there have also been reports that a petition to fire the Minister of Justice (who quoted the earlier ban) has been filed.

[bocyaj]

Only reason is to get some taxes from the people by the name of Bitcoin.Before this also, people used the bitcoin.But it's no use for the government.So they regulate the Bitcoin among the people officially and get the plan to get the taxes from the people.As like a road,land and some other taxes,now people have to pay tax for bitcoin trading in South Korea.

[jseverson]

Well that's interesting. I was wondering what the reason behind South Korea's urgency in crypto regulation was. They seemed to be in an awful hurry. If they're fielding high profile cases like this, then I guess it's a no brainer for them to fast track regulations, and even raid exchanges.

This was going to happen either way, though. All these incidents did was to make South Korea pull the trigger faster. Everyone knows crypto is exploitable, and that it's currently being exploited. I understand these crackdowns.

[jsarce]

The Korea Customs Service (KCS) has revealed an investigation into illicit Forex trading practices, and uncovered $600 million (637.5 billion won) worth cryptocurrencies that were exchanged illegally in South Korea.

The statement further disclosed four instances of illegal tradings. In the first case, money was transferred from Japan to an unknown country whereby 53.7 billion won were sent to another person/entity using cryptocurrencies. In the second case, funds worth 472.3 billion Korean won were exchanged between Australia and South Korea. KCS explained that transferring funds between countries with the sole purpose of avoiding bank and remittance fees is considered illegal.

In the third case, foreign currency was sent to an overseas organization (as cryptocurrencies) which were then converted and remitted to the recipient. In the fourth case, funds worth 164.7 billion won were received by a paper company, citing ‘purchase of software’ as a coverup. KCS mentioned that it will start investigating cryptocurrency agents and forex operators for money laundering and illegal trading charges. Other areas that will undergo critical inspection include smuggling of drugs using virtual currencies. The names of the suspects were not revealed in the press release.

media articles are presenting misinformation about the actual quote.
There are great concerns regarding virtual currencies and the justice ministry is basically preparing a bill to ban cryptocurrency trading through exchanges.

Recent news also has the Ministry of Strategy and Finance with an official statement saying they do not agree with the trading ban, and there have also been reports that a petition to fire the Minister of Justice (who quoted the earlier ban) has been filed.

Still makes sense. Government produce profits in remittance fees via taxes. If cryptos can go through banks as well as fees then that's income loss for the government. That's why countries go after cryptocurrencies.

[Kiweikoo]

The Korea Customs Service (KCS) has revealed an investigation into illicit Forex trading practices, and uncovered $600 million (637.5 billion won) worth cryptocurrencies that were exchanged illegally in South Korea.

The statement further disclosed four instances of illegal tradings. In the first case, money was transferred from Japan to an unknown country whereby 53.7 billion won were sent to another person/entity using cryptocurrencies. In the second case, funds worth 472.3 billion Korean won were exchanged between Australia and South Korea. KCS explained that transferring funds between countries with the sole purpose of avoiding bank and remittance fees is considered illegal.

In the third case, foreign currency was sent to an overseas organization (as cryptocurrencies) which were then converted and remitted to the recipient. In the fourth case, funds worth 164.7 billion won were received by a paper company, citing ‘purchase of software’ as a coverup. KCS mentioned that it will start investigating cryptocurrency agents and forex operators for money laundering and illegal trading charges. Other areas that will undergo critical inspection include smuggling of drugs using virtual currencies. The names of the suspects were not revealed in the press release.

media articles are presenting misinformation about the actual quote.
There are great concerns regarding virtual currencies and the justice ministry is basically preparing a bill to ban cryptocurrency trading through exchanges.

Recent news also has the Ministry of Strategy and Finance with an official statement saying they do not agree with the trading ban, and there have also been reports that a petition to fire the Minister of Justice (who quoted the earlier ban) has been filed.

Still makes sense. Government produce profits in remittance fees via taxes. If cryptos can go through banks as well as fees then that's income loss for the government. That's why countries go after cryptocurrencies.

You told relating some technicalities of the economics of a country and the interest developed in this crypt world. But what I think as a layman that these governments know better about bitcoins. They already know the chromatic effect of the bitcoins on the population of their countries within such short time span. They only fear from the decentralized system of bitcoins, hence they wouldn’t be controlling.

[codewench]

I was wondering what the reason behind South Korea's urgency in crypto regulation was. They seemed to be in an awful hurry.

My theory:

North Korea. It's commonly published that NK is in dire need of foreign currency. It's also suspected that NK was behind WannaCry. If so, they'd need some way to convert BTC into fiat. The crypto craze in South Korea is a perfect cover. As both countries are populated by the same "people" using the same language, an NK agent could blend right in in SK. The anonymous banking was just tailor made to convert ill-gotten crypto into fiat.

I fear that some of the ponzi coins are ultimately a product of North Korea...

[davinchi]

I was wondering what the reason behind South Korea's urgency in crypto regulation was. They seemed to be in an awful hurry.

My theory:

North Korea. It's commonly published that NK is in dire need of foreign currency. It's also suspected that NK was behind WannaCry. If so, they'd need some way to convert BTC into fiat. The crypto craze in South Korea is a perfect cover. As both countries are populated by the same "people" using the same language, an NK agent could blend right in in SK. The anonymous banking was just tailor made to convert ill-gotten crypto into fiat.

I fear that some of the ponzi coins are ultimately a product of North Korea...

I’m not really sure, but I’m thinking the reason is for them to be able to charge tax on their citizens that makes use of Bitcoin, apart from that, I don’t know any other good reason that will make them want to regulate Bitcoin.

Oh, forgot to add that they will also want to stop money laundering, due to the recent activities that have occurred– people moving big amount of money in and out.

[Kotone]

The Korea Customs Service (KCS) has revealed an investigation into illicit Forex trading practices, and uncovered $600 million (637.5 billion won) worth cryptocurrencies that were exchanged illegally in South Korea.

The statement further disclosed four instances of illegal tradings. In the first case, money was transferred from Japan to an unknown country whereby 53.7 billion won were sent to another person/entity using cryptocurrencies. In the second case, funds worth 472.3 billion Korean won were exchanged between Australia and South Korea. KCS explained that transferring funds between countries with the sole purpose of avoiding bank and remittance fees is considered illegal.

In the third case, foreign currency was sent to an overseas organization (as cryptocurrencies) which were then converted and remitted to the recipient. In the fourth case, funds worth 164.7 billion won were received by a paper company, citing ‘purchase of software’ as a coverup. KCS mentioned that it will start investigating cryptocurrency agents and forex operators for money laundering and illegal trading charges. Other areas that will undergo critical inspection include smuggling of drugs using virtual currencies. The names of the suspects were not revealed in the press release.

South Korea is a countey that is also known to be a technologically advanced country. However I still think that there moght be some bad news that they keep getting wich also points to what you raised regarding the illegal trading that was medium is the bitcoin transfer that made it harder for the authorities to deduce who made or what happened to the transfer due to its anonymity

[FH Hussin]

The Korea Customs Service (KCS) has revealed an investigation into illicit Forex trading practices, and uncovered $600 million (637.5 billion won) worth cryptocurrencies that were exchanged illegally in South Korea.

The statement further disclosed four instances of illegal tradings. In the first case, money was transferred from Japan to an unknown country whereby 53.7 billion won were sent to another person/entity using cryptocurrencies. In the second case, funds worth 472.3 billion Korean won were exchanged between Australia and South Korea. KCS explained that transferring funds between countries with the sole purpose of avoiding bank and remittance fees is considered illegal.

In the third case, foreign currency was sent to an overseas organization (as cryptocurrencies) which were then converted and remitted to the recipient. In the fourth case, funds worth 164.7 billion won were received by a paper company, citing ‘purchase of software’ as a coverup. KCS mentioned that it will start investigating cryptocurrency agents and forex operators for money laundering and illegal trading charges. Other areas that will undergo critical inspection include smuggling of drugs using virtual currencies. The names of the suspects were not revealed in the press release.

media articles are presenting misinformation about the actual quote.
There are great concerns regarding virtual currencies and the justice ministry is basically preparing a bill to ban cryptocurrency trading through exchanges.

Recent news also has the Ministry of Strategy and Finance with an official statement saying they do not agree with the trading ban, and there have also been reports that a petition to fire the Minister of Justice (who quoted the earlier ban) has been filed.

Still makes sense. Government produce profits in remittance fees via taxes. If cryptos can go through banks as well as fees then that's income loss for the government. That's why countries go after cryptocurrencies.

Totally agree with you. Its all about the taxes and the higher the amount of coin the higher the taxes the profit the goverment get from it. Plus, some of the goverment servant must have experience how the crypto works  and the future of it looking so promising for everyone.

[Tizianodg]

According to the government, South Korea wants to regulate cryptocurrency exchanges to eliminate the potential of these digital currencies for the commission of certain crimes, including money laundering and the sale of prohibited substances.

[Siopao]

There have been reports that says S. Korea have discovered bitcoin exchanges from their country to another and it involves a huge amount of money. It was told on the report that regulating btc exchanges is their main concern when it comes to cryptocurrency so to avoid illegal activities. It's simply because btc is a decentralized transaction and that they cant control it. Their people can wire money without having being taxed and lot of supposedly income have been lost in the government.

[KurtR90]

There will not be a full ban on crypto currencies could end up imposing a certain mandatory compliance legislation for exchange houses. This could have important consequences, since those that do not comply with the established regulations could end up closing to avoid the imposition of specific penalties or fines.

[bitcon]

The Korea Customs Service (KCS) has revealed an investigation into illicit Forex trading practices, and uncovered $600 million (637.5 billion won) worth cryptocurrencies that were exchanged illegally in South Korea.

The statement further disclosed four instances of illegal tradings. In the first case, money was transferred from Japan to an unknown country whereby 53.7 billion won were sent to another person/entity using cryptocurrencies. In the second case, funds worth 472.3 billion Korean won were exchanged between Australia and South Korea. KCS explained that transferring funds between countries with the sole purpose of avoiding bank and remittance fees is considered illegal.

In the third case, foreign currency was sent to an overseas organization (as cryptocurrencies) which were then converted and remitted to the recipient. In the fourth case, funds worth 164.7 billion won were received by a paper company, citing ‘purchase of software’ as a coverup. KCS mentioned that it will start investigating cryptocurrency agents and forex operators for money laundering and illegal trading charges. Other areas that will undergo critical inspection include smuggling of drugs using virtual currencies. The names of the suspects were not revealed in the press release.

media articles are presenting misinformation about the actual quote.
There are great concerns regarding virtual currencies and the justice ministry is basically preparing a bill to ban cryptocurrency trading through exchanges.

Recent news also has the Ministry of Strategy and Finance with an official statement saying they do not agree with the trading ban, and there have also been reports that a petition to fire the Minister of Justice (who quoted the earlier ban) has been filed.

Still makes sense. Government produce profits in remittance fees via taxes. If cryptos can go through banks as well as fees then that's income loss for the government. That's why countries go after cryptocurrencies.

I also think that the main reason of this is taxes. Governments of South Korea and many other countries do not want to lose any chance to get more profits and more money from everything, including even virtual money.