South Korean Customs Joins Forces with Five Major Exchanges to Combat Illegal Crypto Transactions
The South Korean Customs Service and five major exchanges have jointly established a committee to prevent illegal crypto asset transactions.
In a move to counter the surge in illicit foreign exchange transactions involving cryptocurrency assets, the South Korean Customs Service has joined forces with prominent exchanges including Bithumb Korea, Coinone, Korbit, Dunamu and Streami. This collaboration has resulted in the establishment of a ‘Virtual Asset Illegal Foreign Exchange Transaction Prevention Council.’
The Council, formed on 8th Jaunary 2024 will function as a dedicated coordination committee aimed at proactively addressing illegal foreign exchange transactions tied to virtual assets. The initiative aims to engage in discussions with pertinent institutions and gather relevant perspectives before the integration of virtual assets into the formal financial system.
Comprising the five major virtual asset operators and the Digital Asset Exchange Joint Advisory Group (DAXA), the Council serves as a consultative body facilitating cooperation between the involved entities.
During the inaugural meeting, the Korea Customs Service apprised virtual asset business operators of efforts in combating foreign exchange crimes linked to virtual assets. Detailed insights into ongoing investigations and the regulatory landscape were shared, enabling operators to discern potential risks associated with suspicious transactions.
“Through continuous collaboration with related organizations, we will take the lead in preventing the spread of damage to the innocent public by eradicating illegal activities in which virtual assets are abused as a means of money laundering, such as voice phishing crime proceeds,” stated Korea Customs Service.
South Korea’s Stance on Regulating Virtual Assets
The new council’s focus will on eliminating illegal activities wherein virtual assets are exploited for money laundering, such as the proceeds from voice phishing crimes. The service iterated its dedication to continuous cooperation with relevant organizations to safeguard innocent individuals from the adverse impacts of illicit activities involving virtual assets.
Likewise, South Korea’s Financial Supervisory Service is currently formulating comprehensive guidelines for virtual assets, specifically addressing aspects such as issuance volume, circulation volume and listing standards.
Ahn Byeong-nam, head of South Korea’s Digital Asset Research Team at the Financial Supervisory Service, participated in a policy discussion on the ‘Enforcement and Tasks of the Virtual Asset User Protection Act’ at the National Assembly in Yeouido, Seoul on 8th January, 2024.
During the discussion, he stated, “We are in the process of developing standards for issuance volume, circulation volume, and listing standards,” noting that this initiative has been underway for approximately six months in collaboration with exchanges and is nearing completion.
“As the law is being drafted for the first time, the guidelines must take into account various market characteristics, such as the existence of multiple markets due to the existence of various exchanges and the fact that the distinction between the global market and the domestic market is not clear,” Byeong-nam added.
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