Among other things, cryptocurrencies are also notoriously known for facilitating illegal transactions. Because of the anonymity provided by privacy coins, they are likely to become the choice for illegal activities. However, another side of the story states data suggests most illegal transactions still happen through cash. Nonetheless, Asian governments have been wary of cryptocurrencies because of their high riskiness as well as their propensity to facilitate illegal activities.
The government of South Korea had been vocal about their concerns with the cryptocurrency market in the country. The regulators have taken notice of the use of cryptocurrencies in money laundering, tax evasion, and other illegal activities. Major financial authorities in the country have joined hands to combat the problem.
The crackdown is set to last till June. This period will see extremely strict regulation and close monitoring. The Financial Services Commission has directed all financial institutions to work on the monitoring of cryptocurrency withdrawals. The Financial Intelligence Unit had been designated to deal with suspicious activities. The finance ministry and Financial Supervisory Services are also monitoring cross-border payments closely.
The country has strengthened its cryptocurrency regulation even more after imposing the Act on Reporting and Using Specified Transaction Information in March. The Act requires cryptocurrency traders and investors to trade only with real-name based accounts.
