Despite the negative connotations implied by the phrase, it is everyone’s shared mission to promote the use of cryptocurrency as legal tender around the globe. In South Korea, 16 people were arrested for illicit trading on foreign exchanges, with the total volume of assets exchanged unlawfully estimated at 2.7 trillion won, or close to $2 billion.
One should keep in mind that cryptocurrency is still subject to many limitations and even bans (depending on assets and types of transactions). Seven of the sixteen suspects are currently awaiting resolution of their cases while they are charged with incompetence and unlawful financial activities. The arrests and charges are being made under the terms of the Foreign Exchange Transaction Act, which applies to the handling of digital currencies and other digital assets.
Furthermore, the “kimchi premium,” a tax levied on all transactions involving foreign assets purchased in South Korea, is avoided by these deals, which is an interesting quirk. This restriction makes it difficult for persons in SK to take advantage of the potentially significant returns from investing in highly volatile assets. Even though its purpose is to shield domestic investors from the dangers of such trading tactics, the law has been met with widespread opposition.
Because of concerns that criminals could use cryptocurrencies as part of elaborate money-laundering operations, the country takes a hard stance against them. South Koreans, on the other hand, strongly oppose the government’s stance against crypto trading. Yoon Suk-election Yeol’s as South Korea’s 13th president heralds a new era for crypto trading in the country. As soon as news broke that the next president planned to loosen cryptocurrency rules, several major businesses, including Samsung Securities, announced plans to launch a new exchange in the first quarter of 2023.
Additionally, the country’s monetary authority has opted to delay the introduction of new taxes on crypto traders. Progress like this is essential. Adoption rates are slowed down by a couple of steps whenever crypto is used in criminal operations. Now all that’s left is for governments to see the light and start accepting cryptocurrency payments.