According to KFIU, it will work with local cryptocurrency authorities to ensure that Money laundering and fraudulent activities using cryptocurrency do not occur on the local market.

require six major South Korean banks that have decided to support cryptocurrency exchanges to report to KFIU if suspicious activities are unraveled. Local banks, including Shinhan Bank, Nonghyup, IKB and Woori Bank, are required to file KFIU reports on suspicious transactions and prevent financial crimes on a regular basis.

Stricter regulations, optimistic

The South Korean government has allocated substantial resources to regulate the local cryptocurrency market and provide a more stable and robust infrastructure for investors in the region. market.

For many weeks, the majority of South Korean investors in the traditional financial sector and the cryptocurrency market have been outraged by the insider trading initiated by officials working for the Services Commission financial institutions of South Korea.

Choi Heung Sik, director of the FSC, admitted last week the agency sold Bitcoin immediately before the announcement of the ban on trading fake cryptocurrency Justice Mi's Country nister Park Sang-ki and bought Bitcoin after the announcement.

At the time, Hong Nam-ki, head of the state coordination division, said:

"The government is currently investigating the various government officials suspected of initiating insider trading.Since it is not appropriate for a government official to exchange cryptocurrencies, l & # 39; agency will encourage its employees to prevent trading in cryptocurrencies in the short term. "

Following the banal South Korean cryptocurrency trading fiasco, President Moon Jae-in's popularity rating has reached a historically low level below 60%, and the government has been heavily criticized for its negligence.

Starting this week, to counterbalance the mismanagement of fake cryptocurrency. ban by the Ministry of Justice, the South Korean government and financial authorities began to regulate the local cryptocurrency market and businesses strictly. Previously, the South Korean government was reluctant to regulate cryptocurrency businesses because it feared that the South Korean people would consider it an endorsement of the market.

Rules Benefit Local Investors

Last week, South Korean investors feared that banks would cut money off the market by disabling bank accounts, as the Minister of Finance Justice claimed in its controversial premature declaration on the cryptocurrency market

announced the closure of virtual bank accounts deployed on cryptocurrency exchanges.

However, since then, six major South Korean banks have supported local exchanges, KFIU has begun to regulate the market and the government has begun to consider cryptocurrency. businesses as providers of legitimate financial services.