- Foreign transfers in cryptocurrencies are prohibited in the country
- And the BTC rate on local exchanges often differs
- It becomes a tidbit for traders
South Korea Customs Service discovered large illegal transactions with cryptocurrencies. Their total for the year was 5.6 trillion Korean won ($4.3 billion). The case concerns transfers and trading, which allow you to earn on the difference in the rates of some tokens in this country.
Cryptocurrencies in South Korea tend to trade at higher premiums or discounts compared to global market prices. Thus, from February 17 to February 19, the Korea Premium Index was in the discount zone from -0.24 to 0.01. This made it possible to “save” from $20 to $100 on the purchase of one BTC.
The reason is that local authorities do not allow foreign platforms to serve local investors, and foreign investors are prohibited from using local platforms.
This difference leads to attempts to conduct illegal trading between countries. For example, they are trying to buy cryptocurrencies at a lower price abroad and then resell them in South Korea.
During the year, the policemen recorded 15 cases of illegal transactions using cryptocurrencies. They account for almost 70% of the total amount of illegal foreign transactions detected by customs.
The amount of shadow foreign transactions is increasing every year. So, in 2022, the volume of transactions detected by the customs service increased by 211%. In this regard, the government is preparing a new system for tracking crypto transfers.
