Crypto News- South Korea is closely scrutinizing every crypto transaction as reported by the Financial Intelligence Unit (FIU), which noted a significant surge in suspicious activities in 2023 compared to the previous year.
“In light of this surge, the FIU received nearly 49% more reports of suspicious transactions from virtual asset service providers than the previous year,” the report states.
South Korean Authorities Grapple With Surge in ‘Questionable’ Crypto Transactions
In response, the FIU has ramped up collaboration with other law enforcement agencies to bolster efforts against illicit crypto dealings. This concerted approach is aimed at fortifying South Korea’s stance against cryptocurrency-related crimes.
According to Statista, South Korea is forecasted to generate annual revenues of $2.2 billion in the crypto market by 2027. However, with the implementation of the Virtual Asset User Protection Act commencing on July 19, 2024, the regulatory landscape for crypto is set to undergo a significant transformation.
The act aims not only to crack down on illicit crypto activities but also to safeguard the burgeoning crypto industry in anticipation of substantial growth ahead.
Despite the intensified enforcement measures, not all legal actions in the crypto sphere have yielded desired results. Recently, South Korean crypto traders were accused of exploiting the price disparity, known as the Kimchi premium, between local and overseas exchanges. However, they were acquitted after initial trials, highlighting the complexities of regulating the crypto market.
Prosecutors alleged that this price differential, which ranged from 3% to 5%, resulted in profits amounting to approximately $3.2 billion.
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