A newly discovered report by South Korean financial security officials has revealed the reasons for the tough measures against cryptocurrencies in the country in 2018, which played an important role in “Crypto Winter”.
Digital Today has uncovered the “Annual Anti-Money Laundering Report 2017” that shows this The Financial Intelligence Unit identified more than half a million cryptocurrency transactions related to illegal activity in South Korea in 2017.
The 519,908 transactions in cryptocurrencies were classified by the authorities as “suspicious”.and the rise in money laundering led to the national government’s decision to take partial action against cryptocurrencies in 2018.
It took several years for the report to be published, despite the fact that it was released in November 2018.
The director of a crypto exchange is said to be involved in money laundering
According to the 2017 annual report One of the best known cases of money laundering was an undisclosed crypto exchange.
The Financial Services Commission has spelled this out in detail the director nicknamed “Mr. A” in the report Transfer money from your account to other exchange accounts after receiving money from traders in the exchange’s corporate accounts.
Later Mr. A transferred the money to his relatives’ accounts, repeated the same type of transaction, and reached a transferred sum of ten “trillion” Korean won. You reported that Mr. A has finally managed to avoid taxes in the country.
Increasing money laundering in cryptocurrency led to repression
This and other cases caused the South Korean financial security officers to partially take action against virtual assets in 2018. Based on the 2019 report, the Financial Services Commission came to the following conclusions:
“With the increase and diversification of the financial market base due to the emergence of Kagasan Mountain and Fintech, the crime of money laundering with cryptocurrencies has increased not only quantitatively but also qualitatively and is becoming more and more complicated. “
Cointelegraph reported on March 5 that The South Korean National Assembly passed a revised law on the transmission and use of information about individual financial transactions that focused on the introduction of a licensing system for crypto exchange.
With the measure Virtual asset operators, such as exchanges, should report their movements to the Financial Services Commission Financial Intelligence Unit to strengthen anti-money laundering systems.
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