South Korean authorities to inspect six of the country's biggest banks for money laundering as part of an unprecedented survey of cryptocurrency links

As local media reported on Sunday, the Financial Intelligence Unit (FIU) and the Financial Supervisory Service ( FSS) decided to decide whether the institutions "fulfilled their obligations to prevent money laundering in the management of virtual accounts".

Woori Bank, Kookmin Bank, Shinhan Bank, NongHyup Bank, Korea Industrial Bank and Korea Development Bank are expected to receive a "comprehensive investigation" to be completed next Thursday.

As speculative investments in Bitcoin and altcoins continue to disrupt regulators around the world, Korea has taken a firm stance in recent months.

New legislation will seek to impose severe restrictions on how cryptocurrency trading can work in the country, as well as who can use it and to what extent.

South Koreans will likely be able to hold only one trading account related to their real name

Inspection Report, Yonhap News Agency seemed to predict a predatory climate for trade.

"They (the FIU and the FSS) are trying to cut cash flow into cryptocurrency exchanges and cryptocurrency exchanges that have flaws in their system," he says.

What these "flaws" might imply remains vague, yet the security configuration of the main exchanges is brought to light after organized piracy, an attempt by a Korean news agency.

Using private hackers to white hat, the agency managed to enter into exchange accounts that she set up maliciously, bypassing even two-way authentication factors, he reported last month.