In light of a surge in illicit activities associated with the over-the-counter (OTC) crypto trading market, South Korea is increasing its regulatory scrutiny. Financial regulators in this tech-forward nation are actively delving into the largely unregulated domain of OTC crypto trading in the Asian country.
The report claims a sense of urgency to establish concrete regulatory measures amid mounting concerns regarding possible abuse in money laundering and other illegal endeavors.
Increasing Pressure On OTC Crypto Exchanges
In a discussion titled “Criminal Legal Issues Related to Virtual Assets,” key regulatory authorities such as Deputy Chief Prosecutor Ki No-Seong and the Financial Services Commission’s Park Min-woo emphasized the potential dangers of the unregulated OTC crypto sector, according to local news sources.
Mr. Ki No-Seong emphasized the critical nature of regulating alleged illicit OTC crypto entities. These companies, often operating from foreign territories, facilitate unauthorized conversion of virtual currencies into the Korean won or other global currencies, according to No-Seong.
The predominant issue is that these entities function without official registration, circumventing established trading business norms in South Korea.
Unlike official exchanges recognized by the government, the OTC crypto market operates in the shadows. According to the report, while leading regulated crypto platforms in South Korea, such as Upbit, deal with roughly 192 digital currencies, OTC platforms have a roster of up to 700.
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Author: Samuel Edyme
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