According to a Bloomberg study, the adoption rate of cryptocurrencies in South Korea is on the rise and some of these cryptocurrency transactions might support illicit business.
According to Bloomberg, the majority of illicit foreign exchange transactions in South Korea this year have been tied to cryptocurrencies. Additionally, the data indicates that they have so far participated in nearly 75% of all illegal Forex transactions in 2022.
Per Bloomberg, the South Korean prosecutor’s office recently received reports of four illicit crypto-related transactions. The transactions have a combined value of 1.5 trillion won ($1.1 billion).
This sum is 70 times the number of illegal cryptocurrency-related FX transactions the nation saw in 2020. Additionally, it is almost twice as much as the 827 billion won seen throughout the year 2021.
In addition to the four illegal FX transactions, South Korea is also looking into related cases involving $3.4B in unusual transactions. The transactions are said to be connected to illegal cryptocurrency activities. The authorities also assert that the transactions were made possible by two significant banks in the nation.
South Korea and Metaverse
In connection with the ongoing inquiry into the massive $3.4B transaction fraud, the country made its first arrests on August 11. The authorities arrested three people who were reportedly involved in the inquiry. The probe has already turned up connections to the Shinhan and Woori banks in South Korea.
The Metaverse and NFTs are major growth areas for South Korea’s crypto business. The South Korean government contributed around $177 million toward the growth of the Metaverse market there. It was the first government to take this action as a result formally.
The metaverse is an uncharted digital continent with indefinite potential,
Lim Hyesook, Minister of Science and ICT, said.
Because of their promise of financial freedom and resistance to censorship, cryptocurrencies’ adoption rate is increasing as they become more widely used.
However, a rise in unlawful transactions coincides with an increase in adoption rates. However, this in no way implies that the industry is being constrained. Proper regulation and control, as seen in traditional finance, should reduce illegal transactions and criminality.