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.