Following meetings to discuss the instability of digital currency markets and their illicit use of crimes such as money laundering, officials in South Korea have stated that there would be “no illegal cryptocurrency activity in the nation.”
According to the Korea Herald, the South Korean government is planning to tighten regulations on digital currencies in order to make it easier to spot illicit digital currency transfers.
In March, the authorities announced new penalties for digital currency violations, including a more stringent requirement for exchanges to report suspicious transactions. A new digital currency levy is also in the works, with an implementation date set for later this year.
According to Gu Yoon-Cheol, director of the Office for Government Policy Coordination, digital currency assets have “no intrinsic value” and should be viewed with caution.
“Individuals should make careful decisions related to cryptocurrencies as crypto assets, which have no intrinsic value, are means of speculation rather than investment.”
As part of the current requirements, digital currency companies must report all irregular transactions to the Korean Financial Intelligence Unit within three days. The Korean Financial Intelligence Unit will investigate reported transactions in collaboration with the police and tax authorities.
South Korea’s changing regulatory environment has proven to be no barrier to the digital currency market’s growth, which continues to grow in the region.
Digital currency trade rates in Korea surpassed overall trading volumes on the country’s leading KOSPI stock exchange in March 2021.