South Korean Regulator Takes Aim At OTC Crypto Trading

• South Korea's customs agency and the Financial Services Commission (FSC) have highlighted the role of crypto trading in illegal forex transactions.
• Unlawful forex transactions via crypto assets reached $4 billion in 2022.
• South Korean regulators are focusing on over-the-counter (OTC) crypto trading in their efforts to combat financial crimes.
• The regulators agree on the need for strong regulation of virtual currencies, particularly OTC trading and depository businesses.
• South Korea currently does not have specific laws to regulate OTC, but individual traders cannot be sanctioned for illegal foreign exchange transactions via virtual currencies.
• Transactions through uncertified crypto exchanges, including leading centralized exchanges like Upbit and Bithumb, are categorized as virtual currency OTC.

The article highlights the growing concern about unlawful forex transactions via crypto assets in South Korea and the efforts of regulators to address this issue. The sentiment is neutral, focusing on the need for stronger regulation without expressing a positive or negative stance.