Local sources have reported that a South Korean inmate, temporarily released to attend a funeral, exploited a cryptocurrency over-the-counter (OTC) deal to rob another individual. He enticed the buyer by offering to sell the digital assets at a rate below the prevailing market value and stole 500 million won. Temporary Release Turns Criminal A face-to-face […]
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South Korean Won Overtakes US Dollar as Top Currency in Global Crypto Trading for Q1 2024
In the first quarter of 2024, the South Korean Won surpassed the US dollar as the leading currency for global cryptocurrency trades, with a cumulative trade volume of 6 billion according to research firm Kaiko, reflecting a growing speculative interest in risky crypto assets in South Korea. The increase in Korean won-denominated trades has been […]
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Crypto.com Expands Into South Korean Crypto Market
Cryptocurrency trading platform Crypto.com is entering the South Korean crypto market with its app launch. “We spent significant time and resources tailoring our offering for this market and are honored to be the first and largest global cryptocurrency exchange to launch in South Korea,” said an executive of the crypto firm. ‘The First Product We […]
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UN Sanctions Inspectors Probe Alleged North Korean Cyberattacks Targeting Crypto Firms
United Nations (UN) sanctions monitors are reportedly investigating specific cases of hacking attacks allegedly carried out by North Korea-affiliated hackers between 2017 and 2023. Besides attacking decentralized finance platforms, the UN monitors alleged that North Korea-affiliated hackers are targeting defense companies and supply chains. Hackers Rake in Billion in Six Years The United Nations […]
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South Korean Regulator Plans to Discuss Crypto Rules With US SEC Chair Gary Gensler
South Korea’s financial watchdog chief is planning to visit the U.S. to discuss crypto regulation with the chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, with a focus on the SEC’s recent decision to approve spot bitcoin exchange-traded funds (ETFs). He stressed that currently, the impact of SEC policies on the world is important.
South Korea Seeks to Discuss Crypto Regulation With SEC Chair Gary Gensler
South Korea’s Financial Supervisory Service (FSS) Governor Lee Bok-hyun announced on Monday his intention to visit leading financial markets in 2024, including the U.S., local media reported.
During these visits, the FSS chief plans to engage in discussions on key regulatory issues, including those pertaining to the cryptocurrency industry, with a particular focus on spot bitcoin exchange-traded funds (ETFs). He stated during a Q&A with reporters:
I will meet with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on … such as virtual asset issues and bitcoin spot ETFs.
“Right now, the impact of SEC policies on the world is important … We [he and Gensler] need to meet and discuss this year,” the FSS governor emphasized.
After years of rejections, the U.S. Securities and Exchange Commission (SEC) approved 11 spot-bitcoin exchange-traded funds (ETFs) on Jan. 10. Ten of them began trading the next day, including Grayscale’s Bitcoin Trust (GBTC), which converted into a spot-bitcoin ETF, and Ishares Bitcoin Trust (IBIT) by Blackrock, the world’s largest asset manager.
South Korea has yet to approve any spot bitcoin ETFs. Currently, virtual assets are not defined as financial products in the country, therefore the launch of spot bitcoin ETF would be considered a violation of the Korean Capital Market Act, which mandates that ETFs track underlying assets like stocks and bonds.
What do you think about the South Korean regulator planning to discuss crypto regulation with SEC Chair Gary Gensler, including issues surrounding spot bitcoin ETFs? Let us know in the comments section below.
South Korean Prosecutor in Court for Passing Information to a Virtual Asset Investment Fraudster
On Jan. 30, a South Korean court continued with the trial of a prosecutor who is accused of passing sensitive information on the progress of an investigation to an alleged virtual asset investment fraudster. According to the Gwangju District Prosecutor’s Office, the acts by the prosecutor constitute a violation of the Attorney General Act.
Prosecutor Accused of Tipping Off Fraudster
On Jan. 30, a South Korean court held its third trial of a prosecutor who is accused of passing on sensitive information to an alleged virtual asset investment fraudster. The unnamed prosecutor, who allegedly received financial favors from the fraudster known only as Tak, faces bribery and violation of the Attorney General Act charges.
According to the Gwangju District Prosecutor’s Office, the prosecutor is believed to have informed the fraudster’s broker named Seong of the existence of a search and seizure against his client. For supplying this information, the prosecutor allegedly received cash and goods worth ,700.
The prosecutor is also accused of providing legal advice as well as writing and editing statements related to Tak’s criminal case. During his appearance as the court’s witness, Tak explained how Seong initiated the meeting between himself and the prosecutor. According to Tak, it was during one of their meetings in December 2020 when the prosecutor initially talked about altering his statement.
“I met with Mr. A at the office of a church one day with Mr. Seong, and he told me that I needed to revise my statement to sort out the details of the case,” the alleged fraudster reportedly told the court.
In his testimony, Tak said he only agreed to pay the bribe money after his broker warned him of an impending change in the fraud case. The broker allegedly told the fraudster that by making the payment would prevent his arrest. However, the prosecutor, through his lawyers, has disputed Tak’s claims and insisted that there is no way to prove that he indeed received the bribery money.
As per the report, as many as eight prosecutors and police officials linked to Seong’s investigation suppression tactics have been arrested.
What are your thoughts on this story? Let us know what you think in the comments section below.
Korean Crypto Exchanges Block Romance Scammers’ Access to Digital Assets Worth Over $82 Million
South Korean cryptocurrency exchanges have successfully stopped romance scams and voice phishing criminals from siphoning digital assets worth over .6 million in the past year. The exchanges attribute their success in blocking criminals to abnormal transaction detection systems, which assist in flagging possible fraudulent transactions.
Romance Scams on the Rise
In 2023, South Korean cryptocurrency exchanges successfully stopped cybercriminals who targeted victims with romance scams and voice phishing from siphoning digital assets worth more than .6 million. The exchanges were reportedly able to achieve this by deploying the so-called abnormal transaction detection systems.
According to a report by one local media outlet, such a system enables the exchange to monitor and flag possible romance scams and other suspicious transactions. A typical romance scam often involves a criminal using a fake social media profile to lure a victim into an online romantic relationship. After gaining the victim’s trust, the scammer will then ask them to send money to fraudulent websites that claim to trade foreign currency exchange or digital assets.
As explained in the report, romance scams have emerged as one of the most rampant fraud tactics used by cybercriminals in South Korea. In the United States, the Commodities Futures Trading Commission (CFTC) recently warned investors to be vigilant when dealing with strangers who ask or invite them to invest in unregistered trading platforms.
In South Korea, Coinone, one of the country’s top crypto exchanges, claimed it blocked romance scammers from accessing .6 million. As explained in the report, some of Coinone’s stringent requirements were instrumental in stopping scammers in their tracks. In one such case, an unnamed 60-year-old male was nearly conned of his entire cryptocurrency holdings by a romance scam group.
“I am planning to send it to a friend who runs a beauty salon in Japan. She’s going to invest like this guy,” he reportedly said as he attempted to complete the transaction. However, Coinone ultimately blocked the transaction after it failed the verification process, the report said.
What are your thoughts on this story? Let us know what you think in the comments section below.
North Korean Lazarus Group Withdraws $1 Million in BTC Using Mixing Service
The Lazarus Group, one of the most infamous cryptocurrency hacking collectives, has made one of its largest cryptocurrency withdrawals in over a month. According to Arkham, an on-chain intelligence exchange system, the group withdrew a million dollars worth of bitcoin from one of its addresses, likely using a mixing service.
Lazarus Group Moves Million in Bitcoin
Lazarus Group, an infamous North Korean cryptocurrency hacking collective, has its funds on the move. According to data from Arkham, an online blockchain intelligence platform, the group recently made one of its largest withdrawals in over a month, withdrawing million worth of BTC to an address controlled by the entity. Then, the group transferred 0,000 in BTC to another address previously used.
Arkham also reported that these moves had likely involved using a mixer, a service that facilitates obfuscating the origins of the funds of transactions. Lazarus’ activities registered by Arhkam were limited to small movements for months before this transaction.
Before, Arkham had reported on trading movements coming from an address controlled by North Korean actors, likely from Lazarus, looking to grow their capital by investing in other cryptocurrencies.
The group has been suspected of participating in several high-profile hacks during 2023, including the attack on Poloniex’s hot wallets in November, in which the exchange lost 4 million and the hack suffered by Coinex in September, where million in cryptocurrency was lost.
Also, the Federal Bureau of Investigation (FBI) linked the group to a theft of million from Stake.com, an online crypto casino and sports betting platform. If all of these incidents were performed by Lazarus, the group netted over 0 million just in 2023.
The group still has over million in cryptocurrency in several addresses, holding 1,629 BTC and 1,519 ETH. These two assets comprise more than 95% of the group’s portfolio.
What do you think about the recent movements of the Lazarus Group? Tell us in the comments section below.
South Korean Tax Accountant: Digital Assets Held in Non-Custodial Wallets Not Subject to Overseas Reporting Requirement
South Koreans with digital assets held in non-custodial or decentralized crypto wallets like Metamask or Ledger are reportedly not subject to the country’s overseas financial account reporting requirement. According to a South Korean tax accountant, only virtual assets held on overseas centralized exchanges are subject to this requirement.
The Overseas Account Reporting Requirement Controversy
The South Korean revenue collector, known as the National Tax Service (NTS), has reportedly clarified that residents holding digital assets in decentralized and non-custodial wallets are not subject to the country’s overseas financial account reporting requirement. The NTS clarified that Article 53 of the Act on International Tax Adjustment does not apply to South Koreans who have digital assets stored in wallets such as Metamask or Ledger.
According to a report, the clarification was in response to residents who wanted to know if the overseas account reporting, which commenced in January 2023, is also applicable to cold wallets and decentralized wallets holding assets worth over 0,000 (500 million won).
However, at the time when the revenue collector began enforcing the new law, many digital asset holders were reportedly unsure if the requirement applied to them. This prompted some residents to ask for clarification.
The report quotes a South Korean tax accountant, Kim Ji-ho, who spoke of how the clarification sparked a debate on what constitutes an overseas crypto wallet.
“The purpose of reporting overseas financial accounts is to report because there are limitations in obtaining overseas tax data, but there was controversy as to whether the Metamask wallet was an overseas wallet,” Ji-ho said.
The tax accountant, however, insisted that the South Korean taxman’s explanation potentially means many decentralized wallets will not be obliged to adhere to the overseas account reporting requirement. Only virtual assets held on overseas centralized exchanges are subject to this requirement, the tax accountant added.
What are your thoughts on this story? Let us know what you think in the comments section below.
South Korean Tokenization Startup Chooses Klaytn Over Ethereum for Gold NFTs
The Klaytn Foundation, an organization devoted to expanding the Klaytn ecosystem, announced that Creder, one of its governance council members, will launch a tokenized gold offering called Gold Pegged Coin (GPC) in January. Creder will also launch Goldstation, a decentralized finance platform to convert physical gold into GPC tokens.
Creder Launches 1:1 Backed Gold Pegged Coin and Goldstation Tokenization Platform
Creder, a South Korean asset digitization startup, is taking its first steps into the gold tokenization business. The company will launch a 1:1 backed gold token called Gold Pegged Coin (GPC) later this month, being the first tokenized gold initiative launched outside Ethereum. Creder chose Klaytn, a blockchain that features low fees and scalability, as the base for this platform to democratize access to this tool. Other tokenized gold alternatives, like Tether Gold (XAUT), are only available on Ethereum.
In addition to the coin, Creder also announced the launch of Goldstation, a decentralized finance tool that will allow users to digitize their gold bullion using non-fungible tokens (NFTs). These gold NFTs are issued on another platform called The Mining Club, which will be used by Goldstation to mint GPC using the NFTs as collateral.
According to the Klytn Foundation, this opens new decentralized finance opportunities, allowing users to leverage this tokenized gold as collateral and generate revenue. Goldstation and GPC will initially be available only for South Korean users, given that the Korea Gold Exchange Digital Asset (KORDA) intermediates as the custody provider of the platform.
While initially, Goldstation will launch only allowing the tokenization of gold, Creder expects to expand to include other metals in its platform. The Klaytn Foundation stated they “plan to comprehensively expand precious metals real-world assets (RWA) tokenization beyond gold in the future.”
Gold tokenization has become a hot topic in financial markets, with several institutions launching initiatives in this field. In November, HSBC announced the launch of a gold tokenization platform focused on London markets, targeting a market of 5 billion.
What do you think about GPC and Goldstation? Tell us in the comment section below.