A newly discovered report by South Korea’s financial control agencies has revealed the rationale behind the crackdown on crypto currencies in the country in 2018, which played a major role in „Crypt Winter“.
Digital Today unearthed the „2017 Annual Anti-Money Laundering Report“ which showed that the Financial Intelligence Unit had identified more than half a million transactions in cryptosystems in South Korea in 2017 related to illegal activities.
The 519,908 transactions on crypto currencies were marked by the authorities as „suspicious“, and the money laundering boom fuelled the national government’s decision to carry out a partial crackdown on crypto currencies in 2018.
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It took several years for the report to be made public, even though it was published in November 2018.
The director of a cryptoexchange is allegedly involved in money laundering
According to the 2017 annual report, one of the most prominent cases of money laundering was an undisclosed cryptoexchange.
The Financial Services Commission detailed that the director, dubbed „Mr. A“ in the report, transferred money from his account to other accounts at the exchange after receiving funds from proposed a ban on investment companies, produced a letter, investigating huobi japan, given directly to engineering schools, the loss of roughly $49 million within the exchange’s corporate accounts.
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Later, Mr. A transferred the money to the accounts of his relatives, repeating the same type of transactions, until a total of tens of „billions“ of Korean Won was transferred. It was reported that Mr. A finally managed to evade taxes in the country.
The increase in money laundering in crypto currencies led to the repression
That case and others led South Korean financial control agencies to take partial crackdown on virtual assets in 2018. Based on the 2019 report, the Financial Services Commission concluded the following:
„With the increase and diversification of the financial market base due to the emergence of Kagasan Mountain and Fintech, the crime of money laundering through crypto currencies has increased not only in quantity but also in quality, and is becoming more complicated.“
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Cointelegraph reported on 5 March that the National Assembly of South Korea had passed a revised bill on the submission and use of information on individual financial transactions, focusing on the introduction of a permit system for cryptoexchanges.
The measure would require operators of virtual assets such as exchanges to report their movements to the Financial Intelligence Unit of the Financial Services Commission in order to strengthen anti-money laundering systems.