Cryptocurrency Crimes Costed South Korea $2.28B Since July 2017

As per an estimate by the South Korean Justice Ministry, cryptocurrency-related crimes caused over 2.69 trillion won (about $2.28 billion) worth of financial damage between July 2017 and June 2019. English-language local media, The Korea Herald reported the news according on July 21. 

As per the publishing, the ministry claims that in the aforementioned time frame they have indicted and detained 132 cryptocurrency-related criminals and fraudsters, with another 288 indicted without physical detention.

Park Sang-kim, the Justice Minister ordered a stern measures against cryptocurrency criminals. As per him the lack of clear regulations on cryptocurrency exchanges lead to a growth in the use of quasi-anonymous or opaque accounts. In January last year, a ban was exercised on anonymous crypto exchange, however despite that minor exchanges have started using so-called “beehive accounts” to circumvent the regulation.

With that step, exchanges keep users funds on their corporate bank accounts, keeping their identities private. Reportedly, the government proposed to end such a practice, though the court halted the initiative ruling citing that the government’s idea of closing the exchange’s corporate bank accounts as inappropriate. 

Shinhan Card, South Korea’s leading credit card firm granted a patent for a blockchain payments system this month. On July 1, news broke that Busan, South Korea’s second most-populous city after Seoul, is considering the launch of a local cryptocurrency in collaboration with BNK Busan Bank, a subsidiary of local holding company BNK Financial Group.

Read more: Crypto And Blockchain Weekly Wrap Up – 15 July 2019 – 21 July 2019

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