In 2022, South Korea will have discovered fraudulent cryptocurrency-related transactions worth more than $1 billion.

 







The first half of 2022 saw around 1.5 trillion won, or over $1 billion, in currency exchange fraud being discovered, according to recent data provided by the Korea Customs Service.

 

 

 

The amount of fraudulent cryptocurrency transactions discovered in the first half of 2022, which was 826.8 billion won, is almost twice as much as what was discovered in the prior year, according to local media Asia Kyungjae. Furthermore, it was discovered that around 4 trillion won had been recovered during the previous five years via the use of virtual currency.

According to statistics made public by the Korea Customs Service, since 2017, nearly $2.8 billion in transactions related to cryptocurrencies have been identified by customs officers, compared to $600 million during the same period in 2021.

 

Currency exchange is one of the often used fraud detection techniques since it enables recipients to send money abroad without using a foreign exchange bank. It is a way to receive domestic won and pay with the appropriate foreign money from another country, or to get foreign currency from another country and give domestic won.

 

Using the 'Kimchi Premium' in Exchange Transactions

Exchange transactions using the so-called "kimchi premium," in which bitcoins are traded at a greater price in Korea than outside, have become common in the virtual currency market. Crypto frauds through the "Kimchi Premium" totaled 4 trillion won over the course of five years, according to a local media report.

 






The difference in price between South Korean and foreign cryptocurrency exchanges is known as the "Kimchi premium." This discrepancy results from South Korean investors' lack of access to high-return investment opportunities.

 

Government officials have emphasized the need to respond to foreign exchange crimes like currency theft and crack down on them by partnering financial authorities with investigative agencies, such as the Financial Services Commission and the Financial Supervisory Service, as well as improving technical measures.

Exchange transactions using the so-called "kimchi premium," in which bitcoins are traded at a greater price in Korea than outside, have become common in the virtual currency market. Crypto frauds through the "Kimchi Premium" totaled 4 trillion won over the course of five years, according to a local media report.

 




 

The difference in price between South Korean and foreign cryptocurrency exchanges is known as the "Kimchi premium." This discrepancy results from South Korean investors' lack of access to high-return investment opportunities.

 

 

 

Government officials have emphasized the need to respond to foreign exchange crimes like currency theft and crack down on them by partnering financial authorities with investigative agencies, such as the Financial Services Commission and the Financial Supervisory Service, as well as improving technical measures.

As an Alternative

 

South Korea has pushed adoption despite the rise in instances of cryptocurrency fraud. Recently, Binance and the South Korean city of Busan inked an MoU to promote adoption. The Yun Seok-yeol government's relaxation of restrictions has also encouraged additional securities businesses to enter the asset exchange market.

 





Reasons to Give a Damn

 

The South Korean government recently started a crackdown on fraud involving cryptocurrencies as part of a decision to maintain tight control over laws, rules, and policies relating to cryptocurrencies. Recent government announcements have stated that the gift tax may also apply to airdrops of virtual assets.

Comments
No comments
Post a Comment



    Reading Mode :
    Font Size
    +
    16
    -
    lines height
    +
    2
    -