US$595M worth of cyber crimes might explain South Korea crypto hesitancy

New South Korea crypto regulations go into effect this week that allow for exchanges, but remove the anonymity

A statement provided  may explain why South Korean authorities have gone through fits and starts about whether or not it will embrace the cryptocurrency industry.

The South Korean customs service told the newswire that it has uncovered KRW637.5 billion (US$595 million) worth of cybercrimes within the cryptocurrency economy.

One of these crimes includes illegal trading – an issue which prompted the government to seriously pursue a complete exchange ban before reneging on that idea. Just yesterday, a compromise was struck whereby trading must be attached to accounts that include a person’s real name.

South Korea is a core market for the crypto space and the will-they won’t-they speculation about a South Korean exchange ban kicked off a bear market for bitcoin that continues today.

Julian Hosp, the Co-founder of TenX, told CNBC that while the new regulations might lead to some short-term pain, but the consequence of stamping out illegal activity within the crypto-space will result in a net positive for the entire industry.

However, eliminating the element of anonymity removes a core feature of the technology.

Furthermore, a person won’t be able to transact KRW10 million (US$9,300) per day or KWR20 million (US$18,600) per week without filing official paperwork stating why this amount of crypto is being bought/sold.

The customs department said it will continue to monitor the exchanges and it will be interesting to see if these regulations have a cooling effect on activity.

Copyright: parilovv / 123RF Stock Photo

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