The Korea Customs Service (KCS) has revealed an investigation into illicit Forex trading practices, and uncovered $600 million (637.5 billion won) worth cryptocurrencies that were exchanged illegally in South Korea.
The statement further disclosed four instances of illegal tradings. In the first case, money was transferred from Japan to an unknown country whereby 53.7 billion won were sent to another person/entity using cryptocurrencies. In the second case, funds worth 472.3 billion Korean won were exchanged between Australia and South Korea. KCS explained that transferring funds between countries with the sole purpose of avoiding bank and remittance fees is considered illegal.
In the third case, foreign currency was sent to an overseas organization (as cryptocurrencies) which were then converted and remitted to the recipient. In the fourth case, funds worth 164.7 billion won were received by a paper company, citing purchase of software as a coverup. KCS mentioned that it will start investigating cryptocurrency agents and forex operators for money laundering and illegal trading charges. Other areas that will undergo critical inspection include smuggling of drugs using virtual currencies. The names of the suspects were not revealed in the press release.
media articles are presenting misinformation about the actual quote.
There are great concerns regarding virtual currencies and the justice ministry is basically preparing a bill to ban cryptocurrency trading through exchanges.
Recent news also has the Ministry of Strategy and Finance with an official statement saying they do not agree with the trading ban, and there have also been reports that a petition to fire the Minister of Justice (who quoted the earlier ban) has been filed.
Still makes sense. Government produce profits in remittance fees via taxes. If cryptos can go through banks as well as fees then that's income loss for the government. That's why countries go after cryptocurrencies.