South Korean Government Announces Crackdown on Illicit Crypto-Related Transactions in an ‘Overheated Market’
In addition to tightening regulation of the South Korean cryptocurrency sector, the central government has focused on cracking down on illegal crypto transactions. The week-long meeting with high-level politicians resulted in a campaign that will be rolled out soon.
Government seeks international help to oversee international crypto currency exchanges
The South Korean government has been meeting with politicians, law enforcement agencies and financial regulators to crack down on illegal trading in the so-called overheated market, Chosun said.
The meeting was chaired by Second Undersecretary Moon Seung-wook, who had invited representatives from the Financial Services Commission, the Ministry of Strategy and Finance, the Ministry of Justice and the National Police Agency.
The purpose of the meeting was to discuss the current state of the virtual asset markets in South Korea. They concluded that a campaign should be launched against market manipulation, money laundering and tax evasion through cryptocurrencies.
But the rule does not only apply to domestic trade. The government even wants to strengthen international cooperation with Interpol to detect illegal transactions of overseas cryptocurrency exchanges.
The main goal, according to Luna, is to prevent currency speculation and damage to investors. He also added:
Virtual currency is not legal tender or a financial investment product, and no one guarantees its value.
Will repression affect the domestic banking system?
The announcement of the raid comes on the heels of new legislation affecting the banking sector dealing with cryptocurrency companies.
Last November, the National Assembly’s Finance Committee approved amendments to the law on information on special financial transactions.
Under this system, cryptocurrencies must follow a set of banking protocols, including linking customer accounts to natural persons and verifying their bank accounts with local identification.
Tax authorities also hold crypto currency operators accountable for their tax obligations. South Korea’s National Tax Service (NTS) recently identified 2,416 people who allegedly hid their assets in cryptocurrency vaults to avoid taxes.
What do you think of the abolition announced by the South Korean government? Let us know your comments in the section below.
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