The Biggest Banks in South Korea Submitted to Cryptocurrency Accounts Inspections
South Korean authorities definitely seem to be the most active ones when it comes to regulation and crackdown of the cryptocurrency market. After several investigations conducted on concerns of potential tax avoidance and announced proposed legislation to regulate the market, now it seems that the biggest banks in the country have caught the attention of authorities.
A new local media report has revealed that some of the biggest banks in South Korea were inspected by authorities. The inspections focused on the cryptocurrency accounts opened at these banks. The accounts are related to cryptocurrency exchanges, which have been on the radar of authorities on concerns of money laundering and speculative trading.
Authorities inspected accounts at six big banks
The investigation is conducted by the Financial Intelligence Unit and the Financial Supervisory Service. The two authorities inspected six major banks and the accounts they gave to some cryptocurrency exchanges. Local media indicated that the authorities will conduct an "intensive probe" into these accounts and are seeking to determine if the banks have committed any wrongdoing.
The banks have to comply with all money laundering reporting policies and this is what authorities are going to check. Authorities revealed that they found 111 bank accounts that are linked to exchanges dealing with cryptocurrencies. These accounts include around 2 trillion won, which is about $1.8 billion.
It has been previously talked about the possibility of closing down exchanges that do not comply with the rules imposed by South Korea. The country recently proposed a ban on all cryptocurrency trading that is conducted anonymously. All these actions plan to limit fraud and money laundering. The ban is set to enter into effect on January 20.
Authorities have surely enhanced their scrutiny of the cryptocurrency market in South Korea. It is yet to see if their new inspections will reach some conclusions.