South Korea And Hong Kong Strengthen Cooperation To Suppress Illegal Cryptocurrency Transactions

Key Points:

• The two countries, South Korea and Hong Kong will work closely together in an effort to crack down on illegal foreign exchange transactions involving cryptocurrencies.
• The two countries’ leaders held a bilateral meeting in Hong Kong yesterday to discuss the plan.
• South Korea says more than 60 percent of illegal forex trading funds under investigation have flowed into companies in Hong Kong.

The South Korea Customs Service announced today that it has decided to activate the exchange of information on foreign exchange crimes with the Hong Kong customs authority to crack down on illegal foreign exchange transactions involving virtual assets.

The customs authorities of the two countries wish to sign a memorandum of understanding (MOU) on cooperation in suppressing foreign exchange crimes in order to exchange information related to illegal foreign exchange transactions.

The customs authorities of the two countries are expected to hold the 34th Korea-Hong Kong Customs Commissioner’s Conference in Seoul this year.

Yoon Tae-Sik, head of the Korea Customs Service, held a bilateral meeting in Hong Kong yesterday with Hong Kong Customs Commissioner Ho Pei-shan to discuss the plans.

The Korea Customs Service believes that more than 60% of the illegal foreign exchange transactions under investigation flowed into Hong Kong-based corporations.

At the plenary session, Commissioner Yoon explained the results of the joint international drug smuggling operation led by the Korean Customs Service last year and emphasized the will to strengthen drug control and international cooperation.

Previously, the Korea Customs Department conducted a bilateral joint raid (Operation Siren) and a multilateral joint raid (Operation Siren Intelligence) twice in May and November last year.

This year, South Korea is also strengthening the regulation and formation of regulatory frameworks for cryptocurrencies. This became even more urgent after the demise of Terra-LUNA in May 2022.

In the South Korean capital Seoul, 300 members of the country’s National Assembly are currently debating 17 proposals related to cryptocurrencies – from implementing reserve requirements at exchanges to securing fair trading – to create better protection for Korean crypto investors.

The culmination of this debate will be the Digital Asset Basics Act (DABA), a comprehensive regulatory framework that will provide regulatory guidelines for South Korea’s burgeoning crypto industry.

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