South Korea’s Finance Minister Choi Sang-Mok announced plans to introduce mandatory reporting of cross-border crypto transactions to combat financial crimes related to foreign exchange. This move aims to enhance surveillance of crypto transactions and prevent tax evasion.
New Mandate for Cross-Border Crypto Transactions
According to an October 24 report by Korean news portal Edaily, Choi stated at a G20 meeting in Washington that South Korea will require all businesses conducting cross-border crypto transactions to report them. “We will support proactive monitoring of crypto transactions used for tax evasion and cross-border currency manipulation,” explained Choi.

Businesses handling these transactions will need to register with the relevant authorities and provide detailed monthly reports to the Bank of Korea.
Cross-Border Transactions as a Tax ‘Blind Spot’
Choi noted that cross-border crypto transactions remain a “blind spot” for South Korea’s tax and customs authorities, allowing criminals to conceal illegal revenues and conduct unauthorized transactions. The Korean Customs Service estimates that 81% of foreign exchange-related crimes – roughly $1.2 billion since 2020 – involve digital assets.
New Definitions and Legal Framework for Virtual Assets
To implement these new regulations, a solid legal foundation will be required. Choi stated that the Foreign Exchange Transactions Act will include new definitions of “virtual assets” and “virtual asset operators.” Virtual assets will be defined as a “third type” that falls outside foreign exchange funds or capital transactions. These legal revisions are expected to be completed in the first half of 2025, with new reporting mandates set for the second quarter.
Further Measures to Protect Crypto Investors
South Korea has already introduced new regulations to protect crypto investors. On July 19, the Virtual Asset Protection Act took effect, requiring virtual asset service providers (VASPs) to adhere to stricter rules to safeguard users’ assets. These regulations include insurance coverage against cyberattacks and the requirement to keep users’ assets separate from the platform’s funds.
Strict Penalties for Crypto Crimes
South Korea will also impose strict penalties for crypto-related crimes, including imprisonment and fines of up to five times the illegally obtained profits.

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Victory for the Bitcoin-friendly opposition party in South Korea! 🇰🇷 They plan to allow investors to buy Bitcoin ETFs, marking a significant step towards mainstream crypto adoption.
Stay tuned for exciting developments

#Crypto #SouthKorea
$BTC

Introduction: In a strategic financial move, South Korea's National Pension Service (NPS), the world's third-largest pension fund, has recently acquired $19.9 million worth of shares in Coinbase, a leading cryptocurrency exchange. This development marks a significant milestone in the intersection of traditional finance and the burgeoning crypto industry, showcasing the increasing recognition of digital assets by institutional investors.
The Global Impact of NPS: As the third-largest pension fund globally, managing assets of over $800 billion, the National Pension Service of South Korea holds a substantial influence in the financial market. The decision to invest in Coinbase shares underscores the pension fund's proactive approach to diversifying its portfolio and exploring emerging sectors, including the rapidly growing cryptocurrency market.Strategic Investment in Coinbase: Coinbase, one of the most prominent cryptocurrency exchanges, has been at the forefront of the digital asset revolution. The National Pension Service's investment of $19.9 million in Coinbase shares signals confidence in the company's business model and growth prospects. This strategic move positions the pension fund to benefit from the potential future success of Coinbase as the crypto industry continues to evolve.Recognition of Cryptocurrency's Institutional Legitimacy: The National Pension Service's investment in Coinbase reflects a broader trend of institutional investors acknowledging the legitimacy and potential of cryptocurrencies. As digital assets gain wider acceptance, traditional financial institutions are increasingly exploring avenues to incorporate them into their investment portfolios.Diversification and Risk Management: Diversifying investment portfolios is a fundamental strategy for mitigating risk and enhancing long-term stability. By adding Coinbase shares to its holdings, the National Pension Service is not only diversifying its investments across different asset classes but also venturing into a sector that has demonstrated resilience and growth in recent years.Impact on Cryptocurrency Market Sentiment: Large-scale investments by institutional players, such as the National Pension Service, have the potential to positively influence market sentiment within the cryptocurrency space. Confidence from traditional financial institutions can serve as a catalyst for increased retail and institutional participation in the crypto market.South Korea's Stance on Cryptocurrency: South Korea has been a key player in the global cryptocurrency landscape, with a significant portion of its population actively participating in digital asset investments. The National Pension Service's move to invest in Coinbase aligns with the country's progressive stance on embracing the digital economy and exploring opportunities within the crypto sector.
Conclusion: South Korea's National Pension Service's strategic investment of $19.9 million in Coinbase shares is a noteworthy development that reflects the evolving landscape of traditional finance and the growing influence of digital assets. As institutional investors continue to navigate the intersection of traditional and crypto markets, this move signals a step towards greater acceptance and integration of cryptocurrencies into mainstream investment strategies. The National Pension Service's foray into the world of Coinbase shares is poised to contribute to the ongoing narrative of institutional participation in the ever-expanding cryptocurrency ecosystem.
$BTC $ETH
#coinbase #SouthKorea #crypto

Prosecutors in #SouthKorea are working harder to extradite Kwon Do-hyung, better known as #DoKwon and five other Terraform Labs employees back to their home country so they may face fraud charges relating to the now-defunct Terra-Luna stablecoin.

Terraform Laboratories, a Singapore-based company, devised the initiative. An arrest order filed in September mentioned Kwon and his associates. In order to speed up their capture and extradition, South Korean prosecutors are now increasing their coordination with their international counterparts and legal organizations. Although the prosecutor's office declined to provide more information on the progress of legal assistance with overseas peers, this will aid efforts to return the accused to Korea.

The Federal Bureau of Investigation and the Southern District of New York prosecutors are also looking into former Terraform employees at the same time as the #SEC lawsuit against Terraform and Kwon, who are accused of hosting a "multi-billion dollar crypto asset securities fraud" and defrauding investors. Police in Singapore have started their own inquiry into Terraform Laboratories.

Asserting that the #Luna #cryptocurrency has never been a financial security, Terraform Labs has denied any wrongdoing. Kwon said he was to blame for the Terra project's failure during his podcast appearance last year but argued there was no fraud.

Daniel Shin, a co-founder of Terraform who is accused of misrepresenting the Luna cryptocurrency and making up to US$100 million by selling the token before it crashed, is under consideration for an arrest warrant, according to the Seoul prosecutor's office.

Shin refuted the allegations, claiming that he had sold the majority of his Luna holdings prior to the price increase and had kept a sizeable portion after the May cryptocurrency crash. However, he refuted claims that he pushed Terra stablecoin as a payment option despite receiving repeated warnings from law enforcement, asserting that he had never been served with such documents. A South Korean court denied the prosecution's plea to have a warrant for Shin's arrest issued in December.

South Korea's Financial Supervisory Service (FSS) is launching a thorough investigation into crypto exchanges to root out illegal activities and ensure compliance with new regulations ¹. The initial focus will be on two exchanges that have raised red flags for suspicious activity.
Inspections to Prevent Money Laundering and Illicit Transactions
The FSS will examine these exchanges to prevent money laundering and identify any illicit transactions ². This move comes after the Virtual Asset User Protection Act was enacted in July, which imposes severe penalties for illegal crypto dealings, including life sentences for those making illegal profits over 5 billion won ³.
Exchanges Under Scrutiny
Major exchanges like Upbit, Bithumb, and Coinone will be scrutinized to ensure they're complying with the new regulations ⁴. The FSS aims to identify and address any unfair practices within these exchanges.
Virtual Asset User Protection Act
The Virtual Asset User Protection Act provided the FSS with the authority to conduct these inspections ⁵. The act was enacted to protect users and prevent illegal activities in the crypto space.
Conclusion
The FSS's move to inspect crypto exchanges is a significant step towards regulating the crypto market in South Korea. By identifying and preventing illegal activities, the FSS aims to create a safer and more transparent environment for crypto users.
#SouthKorea #cryptoregulation #cryptoexchanges #Write2Earn! #dappSOtheFutureIntents