Several South Korean financial authorities plan to join forces to combat illegal transactions involving cryptocurrencies such as bitcoin (BTC).
The inter-agency push comes in response to growing concerns about speculative investments and possibly illegal activities in the current boom on the crypto market, Koo Yoon Chul, head of the government’s policy coordination office, said Monday.
Special attention should be paid to the rise of illegal activities using virtual assets, he said at a meeting of vice ministers of crypto, local news agency Yonhap reported.
The Financial Services Commission will require local financial institutions to increase oversight of cryptocurrency withdrawals as part of the hunger strike, which will last until June. All suspicious activity must be reported to the National Financial Intelligence Unit, which is charged with investigating financial crimes.
Other regulators, such as the Treasury and the Financial Services Authority, also plan to monitor cross-border crypto transactions, the report said.
South Korea has been facing strict regulations since the Financial Transaction Specific Information Reporting and Use Act officially came into effect at the end of March 2021. The law requires local cryptocurrency exchanges to maintain relationships with local banks to ensure mandatory trading on real accounts. South Korea’s National Revenue Service is stepping up efforts to combat tax evasion related to cryptocurrencies, as reported in March.
The new regulatory developments in South Korea came amid new all-time highs in crypto currency markets last week, with bitcoin hitting a record high on the 14th. April broke the $64,000 mark. Despite the record prices of cryptocurrencies, Bank of Korea Governor Lee Joo-yeol stated that cryptocurrencies have significant limitations as a means of payment and warned that their price volatility poses a threat to financial stability.
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