South Korea has announced its focus on regulating over-the-counter (OTC) crypto trading following the illegal deals reaching a volume of $4 billion, according to Cointelegraph. In the recent report by the Korean Customs Service, illegal foreign exchange transactions conducted through digital currencies had reached a total value of $4 billion last year.
Monitoring of OTC Crypto Activities Commenced
The country’s financial regulators, along with increased concerns about the potential use of such transactions in criminal activities, have started closely monitoring OTC crypto trading in Korea.
Additionally, according to a report published in a local newspaper, key regulatory officials such as Deputy Prosecutor Ki No-Seong and Park Min-woo from the Financial Services Commission (FSC) attended a session titled “Legal Issues Related to Virtual Assets.”
“Due to money laundering concerns, OTC crypto markets need to be regulated more rigorously.”No-Seong
Finally, with the Virtual Asset Act set to come into effect in July next year, virtual asset deposit business is expected to nearly disappear.
“In the future, stronger sanctions will be imposed against market manipulation and money laundering in the virtual currency market”Hong Ki-hoon, a business professor at Hongik University.