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South Korea accounts for nearly 75% of illegal foreign exchange transactions even after strict regulations

In the previous two years, South Korea has emerged as a significant crypto market, with crypto transactions reaching new highs. However, due to a lack of crypto rules and government control, cryptocurrency-related unlawful overseas transactions have occurred in South Korea. In fact, while the government considers tightening the regulatory environment, 75% of unlawful foreign currency transactions are crypto-related.

According to South Korean official August 25 data, crypto-related dealings and trades dominate unlawful foreign currency operations. The Prosecutor’s Office in South Korea is now investigating four cryptocurrency-related cases involving more than $1.1 billion in unlawful foreign-exchange transactions. Many instances involving breaches of foreign-exchange transaction restrictions have been filed to congressman Min Byoung Dug by the country’s customs service.

Interestingly, Min Byoung Dug, a politician, accused various crypto exchanges, including Upbit, of listing and delisting shitcoins in order to generate transaction fees. Almost 75% of transactions that violate foreign-exchange laws and regulations include cryptocurrency. Illegal foreign currency transactions have more than quadrupled since 2021, from roughly $800 million to billions this year. In fact, unlawful crypto-related transactions have increased by 61% year over year.

Unfortunately, the previous two years of increased cryptocurrency use in South Korea have resulted in a 70-fold increase in unlawful foreign exchange transactions since 2020.

The four unlawful foreign exchange charges are distinct from the current investigation into banks’ criminal cryptocurrency-related activity. The Financial Supervisory Service of South Korea is looking into institutions such as Woori Bank and Shinhan Bank for $3.4 billion in crypto-linked foreign-exchange transactions.

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Reporter
Jeewan Singh is CryptoShrypto’s content writer and a seasoned writer with over two years of experience in writing about Indian Securities Market. Jeewan's participation in Blockchain and Cryptocurrency started in late 2020, and he hasn't looked back since. The technical and economic outcomes of cryptocurrency are what spark his curiosity, and he keeps one eye on the market.
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