In addition to increasing strict regulations on the Korean cryptocurrency industry, the central government is also committed to “combat” illegal crypto transactions. A meeting with senior politicians was held within a week, and it turned out that a battle was about to be deployed.
The government seeks international help to monitor international cryptocurrency exchanges
According to North Korean Airlines reports, the South Korean government met with politicians, law enforcement agencies, and financial regulators to ban illegal transactions in what they called an “overheated market.”
The meeting was chaired by Wen Shengxu, Second Deputy Secretary of State, who convened the Financial Services Committee, the Ministry of Strategy and Finance, the Ministry of Justice and the National Police.
The purpose of the gathering is to resolve the “status of the virtual asset market” in South Korea. They concluded that a campaign must be launched to combat market manipulation, money laundering and tax evasion through cryptocurrency.
But the rule will not only cover domestic exchanges. In fact, the government hopes to strengthen international cooperation with Interpol to monitor illegal transactions from overseas crypto exchanges.
Moon said that the main purpose is to “prevent speculation and damage to investors.” He also added:
Virtual currency is not legal currency or financial investment product, and no one guarantees its value.
Will the national banking industry be affected by the “hit”?
The announcement of this crackdown comes after new legislation covering the banking industry involving crypto businesses.
In November last year, the Finance Committee of the National Assembly approved the revised “Special Financial Transaction Information Law.”
Under this framework, cryptocurrency exchanges are required to follow a series of banking agreements, including linking customer accounts to individuals and their bank accounts, and verifying them through local identification documents.
In terms of tax obligations, the most important thing for domestic tax authorities is to make responsible crypto traders. Recently, the National Tax Service (NTS) of South Korea identified 2,416 individuals who reportedly hid their assets in cryptocurrency to bypass taxation.
What is your opinion on the “strike action” announced by the South Korean government? Let us know in the comments section below.
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