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Adding to the South Korean cryptocurrency industry\u2019s stricter regulations, the central government is focusing on the \u201ccrackdown\u201d of illegal crypto transactions. A meeting over the week held with high-ranked politicians resulted in a campaign that will soon be deployed.<\/strong><\/p>\n According to Chosun<\/a>, the South Korean Government met with politicians, law enforcement, and financial watchdog authorities to take down illicit transactions from what they named an \u201coverheated market.\u201d<\/p>\n The meeting was led by the Second Deputy Secretary of State Moon Seung-wook, who called authorities from the Financial Services Commission, the Ministry of Strategy and Finance, the Ministry of Justice, and the National Police Agency.<\/p>\n The purpose of the reunion was to address the \u201ccurrent situation of the virtual asset markets\u201d in South Korea. They concluded that it\u2019s a must to launch a campaign against market manipulation, money laundering, and tax evasion via cryptos.<\/p>\n But the rule won\u2019t cover only domestic exchanges. In fact, the government wants to strengthen international cooperation with Interpol to monitor illicit transactions coming from overseas crypto exchanges.<\/p>\n The main objective, said Moon, is to \u201cprevent money speculation and damages to investors.\u201d He also added:<\/p>\n Virtual currency is not a legal currency or financial investment product, and no one guarantees its value.<\/p>\n<\/blockquote>\n <\/ins> <\/ins> <\/p>\n The announcement of the crackdown comes in the wake of the new legislation that covers the banking industry which deals with crypto businesses.<\/p>\n The amended Special Financial Transactions Information Act was approved<\/a> by the National Assembly finance committee in November last year.<\/p>\n Under the framework, crypto exchanges are required to follow a series of banking protocols, including linking customer accounts to individuals and their bank accounts that are verified by a local identification document.<\/p>\n Domestic tax authorities are also on top of making accountable crypto traders in terms of their tax obligations. Recently, the National Tax Service of South Korea (NTS) identified<\/a> 2,416 individuals who reportedly hid their assets in cryptos to bypass taxation.<\/p>\nGovernment Seeks International Help to Monitor International Crypto Exchanges<\/h2>\n
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Will the National Banking Industry Be Affected by the \u2018Crackdown\u2019?<\/h2>\n