The Korean Customs Service has recently joined forces with five major local virtual asset exchanges in Korea's Digital Asset eXchange Alliance (DAXA) to establish the "Council to Prevent Illegal Foreign Exchange Transactions in Virtual Assets."

This collaborative effort aims to strengthen cooperation with relevant authorities and virtual asset exchanges to actively address crimes related to illegal foreign exchange transactions involving virtual assets.

Illegal Transactions

According to statistics, in 2022, the Customs Service uncovered 15 cases of illegal foreign exchange transactions involving virtual assets, with a total value of 56.717 trillion Korean won.

In 2023, the number of cases increased to 21, with a total value of 14.568 trillion Korean won.

During a meeting held on the same day, the Customs Service provided updates on the current situation of combating illegal foreign exchange transactions related to virtual assets, highlighted cases that have been uncovered, introduced anti-money laundering systems related to virtual asset exchanges, and discussed collaboration strategies.

Combating Illicit Activity

The Customs Service emphasised its commitment not only to addressing illegal overseas remittances but also to strengthening supervision of malicious activities such as tax evasion, money laundering, and the illicit transfer of assets overseas that involve the misuse of virtual assets.

The goal is to contribute to the establishment of a fair market order.

Simultaneously, the Customs Service aims to prevent greater losses to the public by working closely with relevant organizations to eliminate money laundering and other illegal activities involving virtual assets in crimes like telephone fraud.

In December, DAXA initiated collaboration with the Financial Intelligence Unit (FIU) to receive reports on unreported virtual asset operators.

DAXA has provided a designated email for submitting reports, which should include information about the operator, evidence of unreported activities, and reasons for suspicion.