South Korea Discovered $600 Million in Illegal Cryptocurrency Trading. But There Are No Plans to Ban It

South Korea‘s financial apportion pronounced the supervision has no skeleton to close down cryptocurrency trading, acquire news for investors disturbed that authorities might go as distant as China’s tough action in restraint practical silver platforms.

The criticism by Kim Dong-yeon on Wednesday comes as traders at home and around the universe have been spooked by opposing comments from supervision officials in South Korea, a vital heart for cryptocurrency trade, that Seoul was formulation to anathema internal digital silver exchanges.

“There is no goal to anathema or conceal cryptocurrency (market),” Kim said, adding the government’s evident charge is to umpire exchanges.

Read: South Korea Reportedly Plans to Hit Bitcoin Exchanges With Massive Tax Bills

Reinforcing Seoul’s vigilant to tie the screws on a marketplace widely seen as ambiguous and unsure by tellurian policymakers, the country’s etiquette progressing on Wednesday announced it had unclosed bootleg cryptocurrency unfamiliar sell trade value scarcely $600 million.

“Customs use has been closely looking at bootleg unfamiliar sell trade using cryptocurrency as part of the government’s charge force,” it said.

South Korea has been at the forefront of pulling for extended regulatory slip of cryptocurrency trade as many locals, including students and housewives, jumped into a demoniac marketplace notwithstanding warnings from process makers around the universe of a bubble.

Seoul formerly pronounced that it is deliberation shutting down internal cryptocurrency exchanges, which threw the marketplace into misunderstanding and beaten bitcoin prices. Officials after simplified that an undisguised anathema is only one of the stairs being considered, and a final preference was nonetheless to be made.

Crypto Crimes

Customs pronounced about 637.5 billion won ($596.02 million) value of unfamiliar sell crimes were detected.

Illegal unfamiliar banking trade of 472.3 billion shaped the bulk of the cryptocurrency crimes, it pronounced in a statement, but gave no sum on what movement authorities were holding opposite the order breaches.

In one case, an bootleg FX group collected a sum of 1.7 billion won ($1.59 million) from internal residents in a form of “electric wallet” coins to send it to a partner representative abroad. The partner representative then cashed them out and distributed the allotment to clients formed in that country, according to the statement.

In South Korea, only protected banks and brokers can offer unfamiliar sell services. Local companies and residents who pierce more than $3,000 out of the nation at a time contingency contention papers to taxation authorities explaining reasons for the transfers. Annual abroad transfers of more than $50,000 contingency also be reported with identical documents.

Effective from Jan. 30, authorities imposed manners which concede only real-name bank accounts to be used for cryptocurrency trade designed to stop practical coins from being used for income laundering and other crimes.

Among other breaches, Customs pronounced there were also cases where investors in Japan sent their yen value 53.7 billion won to their partners in South Korea for bootleg banking trade.

It pronounced authorities will continue to guard for any violations of unfamiliar sell manners or of income laundering activities.

Bitcoin stood at $10,123.13 as of 0842 GMT on the Luxembourg-based Bitstamp exchange. The heightened regulatory inspection around the world, however, has seen bitcoin dive about 27.1% so distant this month, on lane for the biggest monthly decrease since Jan 2015.

Cryptocurrencies got another jar last week after Tokyo-based sell Coincheck pronounced hackers stole over $500 million in one of the world’s biggest cyber heists.

Article source: http://fortune.com/2018/01/31/south-korea-illegal-cryptocurrency-trading-exchange-ban/