Crypto crime in South Korea is on the rise bringing the country’s losses to $5 billion in the last five years
According to the South Korea daily newspaper Hankyoreh, the Gyeonggi Provincial Office has filed 14 suspects in a cryptocurrency fraud and theft case totaling $3.5 billion, bringing the country’s losses to $5 billion over the past five years.
South Korea lost $5 billion to crypto crimes in the past four years
The suspects are being investigated for stealing assets from 69,000 victims from July last year until recently when the Korea National Police Agency established the “Virtual Asset Illegal Action Comprehensive Response Task Force” against crypto-related legal violations.
As the popularity of crypto investments in the country grows, so does the crime involved, with the number of crime crackdowns skyrocketing from 41 in 2017 to 333 last year.
According to the report’s brief analysis, crypto-related fraud and multi-level crime accounted for the majority of cases, with 218 cases, followed by 31 cases of illegal activity on cryptocurrency exchanges and 84 other crimes. For example, fraudulent purchases.
As the newly formed task force begins to crack down on illegal activities related to cryptocurrencies, South Korean finance minister Hong Nam-ki will finalize the details regarding the new tax law. Starting from January next year, all annual profits from cryptocurrency trading above 2.5 million won (equivalent to $2,253) will be subject to a 20% capital gains tax.
While the government continues to strengthen regulations aimed at cryptocurrencies, 54% of South Koreans say they support a crypto tax. Moreover, starting September 25, the government will strengthen the management of compliance obligations of cryptocurrency traders.
Businesses must meet reporting and reporting requirements for the Financial Information Analysts Institute. Those who fail to do so could face up to five years in prison and a fine of up to 50 million won ($44,000).
As trading of digital tokens is prone to new forms of illegal fundraising and fraud, investors should vigilant when making investment decisions.
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