South Korean authorities have arrested 16 people involved in illegal foreign exchange transactions connected to crypto assets worth roughly $2 billion.
The country’s customs authorities plan to prosecute two unnamed individuals linked to the illicit transactions, impose fines on seven people related to negligence and continue investigating the remaining seven. The KoreaN Customs Service’s investigation reportedly discovered more than 2.7 trillion won tied to transactions with domestic and foreign crypto exchanges.
More than 380 billion won of the reported transactions were facilitated through illegal remittance agencies. According to the report, the charges on two of the individuals stem from alleged violations of Korea’s Foreign Exchange Transactions Act , legislation amended in 2017 that requires entities involved in crypto transactions to get regulatory approval from the Financial Services Commission.
Recently South Korea’s Financial Intelligence Unit cracked down on 16 virtual asset service providers in the country, including KuCoin, Poloniex and Phemex. The regulatory authority alleged the exchanges had engaged in business activities without registering and said it would potentially impose fines and prison time accordingly.
