Korean police investigates over 30 people who were found to have engaged in almost $1.5 billion worth of illicit overseas cryptocurrency transactions over the past two months, The Korea Times has learned. According to Seoul Central Customs, fourteen people are referred to the prosecution, while fifteen are fined and four are under investigation.
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The police found out that over $710 million concerned illegal foreign currency exchange, another $684 million concerned people falsifying their overseas remittance records, and 83.5 million by making cash withdrawals overseas with Korea-issued credit cards to buy cryptocurrencies abroad.
"Virtual asset transfers under the guise of trade, travel or study expenses are strictly prohibited. Violators will be subject to criminal prosecution or fines," a spokesperson for the Seoul customs office said.
Earlier in June, the Financial Services Commission (FSC) said that Korean banks will not offer services to clients that do not want to comply with ID verification procedures. The local banks will also be required to report suspicious transactions to the Korea Financial Intelligence Unit (KoFIU).
The new guidelines will allegedly affect nearly 60 cryptocurrency exchanges in South Korea. Cryptocurrency exchanges will also have to submit a request for a license by September 24 to KoFIU. The regulatory measure is taken due to watchdogs concern that banks can be held liable for financial crimes at the exchanges.
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