South Korea shifts focus to OTC crypto-regulations
South Korean regulators are concerned over the usage of OTC crypto trades for illicit transactions, including money laundering....
- Regulators in South Korea are expressing concern over the illicit usage of over-the-counter (OTC) crypto trades.
- Senior officials from the Financial Services Commission (FSC) and other regulatory bodies attended a session on criminal legal issues related to virtual assets, focusing on unregulated OTC crypto trading.
- The FSC deputy chief prosecutor emphasized the need to regulate the OTC crypto market to address concerns around money laundering.
- OTC platforms offer anonymity to traders and allow trading of unlisted crypto assets not available on regulated exchanges.
- North Korean actors have been using OTC platforms for illicit foreign exchange transactions, and OTC platforms have also been involved in laundering crypto assets obtained through hacking or ransomware.
- The amount of illicit foreign exchange transactions through cryptocurrencies in South Korea was worth $4 billion last year.
- South Korea has implemented stringent measures to regulate crypto activities, including the passing of the Virtual Asset User Protection Act and the requirement for lawmakers and companies to disclose their crypto holdings.
The article highlights the concerns and actions taken by regulators in South Korea to address the illicit usage of OTC crypto trades. The sentiment is primarily negative, focusing on the risks associated with money laundering, hacking, and crypto scandals.