Major Cryptocurrency Exchanges Involved in Suspicious Remittances

The Financial Supervisory Service is looking into trillions of won sent abroad through domestic banks from domestic cryptocurrency exchanges. According to industry sources, most of the 4.1 trillion won remittances through Woori and Shinhan Banks started at the five major exchanges, that is, Gopax, Bithumb, UPbit, Korbit and Coinone.

According to the Act on Reporting and Using Specified Financial Transaction Information, every cryptocurrency exchange must report every large-scale cash transaction to the Financial Intelligence Unit so that an illegal use of the money can be forestalled. This money laundering prevention-related duty was imposed on cryptocurrency exchanges in September last year, when the act was revised and implemented. In other words, many preceding transactions are likely to have been unreported. According to the Financial Supervisory Service, such suspicious remittances through Woori and Shinhan started in February 2021.

The Financial Intelligence Unit already completed its on-site investigation at Coinone, Gopax and UPbit and hearings are underway between the unit and the exchanges. At the hearings, the exchanges are given an equal chance to speak before sanction determinations.