South Korea focuses on OTC crypto regulations as unlawful deals reach $4B
The report cited several instances of the use of OTC platforms to convert virtual assets into Korean won....
- South Korean regulators are focusing on over-the-counter (OTC) crypto trades due to concerns about their use in criminal activities.
- Financial regulators, including deputy chief prosecutor Ki No-Seong and Park Min-woo of the Financial Services Commission, are monitoring the unregulated OTC crypto market.
- Deputy chief prosecutor No-Seong called for regulation of the OTC crypto market to address money laundering concerns.
- Upbit, the largest regulated crypto platform in South Korea, offers 172 cryptocurrencies, while OTC platforms offer up to 700 cryptocurrencies.
- Instances of using OTC platforms to convert virtual assets into Korean won have been reported, leading to arrests and indictments.
- The value of unlawful foreign exchange transactions made using virtual currency was estimated to be $4 billion (5.6 trillion won) last year.
- South Korea has stringent crypto regulations and has become more proactive following the Terra-Luna collapse.
The article highlights the concerns of South Korean regulators regarding the use of OTC crypto trades for criminal activities. It also emphasizes their efforts to monitor and regulate the OTC crypto market to address money laundering concerns. The sentiment is cautious and proactive.