South Korea Wants “Special Attention” To Bitcoin And Crypto Transactions

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South Korean regulators have announced new crackdown on illegal activities related to crypto amid the ongoing boom in digital asset trading Yonhap News Agency reported today.

“The occurrence of illegal activities using virtual assets needs special attention,” said Koo Yun-cheol, head of the government policy coordination office, at a vice ministerial meeting on Monday.

According to the report, the Financial Services Commission will focus on improving and strengthening the monitoring of “virtual money” withdrawals made with the help of local financial institutions. The latter must monitor and detect signs of potential money laundering and report them to the Financial Intelligence Unit.

Regulators also plan to closely monitor illegal transfers of cryptocurrencies out of the country. In the meantime, the state tax agency will focus on uncovering attempts to evade tax through digital assets.

High demand for bitcoin

How CryptoSlate As previously reported, crypto trading is currently booming in South Korea as the locals are even willing to use the so-called “Kimchi Premium“To get your hands on digital assets. Per Yonhap, the price of Bitcoin recently topped $ 72,000 (80 million won) while the coin was trading at around $ 56,000 worldwide.

This is because, unlike stocks that trade on a central exchange, crypto exchanges are decentralized and prices on the exchange can vary. The “Kimchi Premium” is an example of South Korea where the price of an asset in some regions can vary dramatically compared to other regions due to different market dynamics and supply / demand.

Data from the CoinMarketCap market tool shows that 14 Korean crypto exchanges generate around $ 21.6 billion in daily trading volume, an amount that is above that of the country’s own stock market (just over $ 17 billion).

Last week, Bank of Korea Governor Lee Ju-yeol reportedly warned the public about the high volatility of cryptos, which in turn can lead to financial instability if excessive cash is pumped into digital assets.

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