South Korea to Launch Crackdown on Illegal Cryptocurrency Transactions

“No illegal cryptocurrency transaction in the country,” South Korean officials announced on Monday after a detailed meeting about the Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term in the cryptocurrency market and the potential use of digital assets in money laundering.

According to the latest report published by the Korea Herald, the South Korean government is planning to introduce strict regulations to trace illegal cryptocurrency transactions in the country. South Korea’s Financial Services Commission (FSC), the top financial regulator in the country, has asked financial firms including cryptocurrency exchanges to enhance monitoring activities to identify the involvement of digital currencies in crimes.

In March 2021, the FSC announced that it is planning to impose a heavy penalty on cryptocurrency violations in the country. The commission also asked digital exchanges to report suspicious crypto transactions. In addition, South Korea is planning to introduce a crypto income tax rule later this year.

“Individuals should make careful decisions related to Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term as crypto assets, which have no intrinsic value, are means of speculation rather than investment,” Gu Yoon-Cheol, Chief of the Office for Government Policy Coordination, said in an announcement on Monday.

Cryptocurrency Regulations in South Korea

The latest report from the Korea Herald mentioned that financial firms in the country are required to report suspicious transactions to the Korean Financial Intelligence Unit (KoFIU) within three days. KoFIU will conduct a joint investigation with the police and local tax authorities. Despite the uncertain regulatory environment, the cryptocurrency market is flourishing in South Korea. In fact, crypto trading is surging in the country amid massive price jumps in digital currencies. In March 2021, the overall trading volume on leading cryptocurrency exchanges crossed the total trading volume on Korea Composite Stock Price Index (KOSPI), the country's leading stock exchange.

The cryptocurrency market cap is up by more than 150% since the start of this year. The world’s largest digital currency Bitcoin registered an all-time high of $64,000 on 14 April, which is a spike of nearly 130% in the last 14 weeks.