Unregulated Crypto-Related Foreign Currency Transfers in Korea Are Rising
- During the first 8 months of 2021, Korea saw over $676 million worth of unregulated FX transfers involving cryptocurrencies.

South Korea is one of the biggest crypto markets in Asia. The country is home to some of the leading global digital exchanges. But, with growing adoption, the country is facing the issue of illegal crypto-mediated foreign currency transfers.
According to a report published by Korea Herald, Song Jae-ho of the Democratic Party of Korea (DPK) said that Korea registered more than $676 million worth of unregulated crypto-related foreign currency transfers during the first 8 months of 2021. Song added that the data submitted by the Korea Customs Service (KCS) for the National Assembly Finance Committee's audit of the customs agency showed record growth in suspicious crypto-mediated FX transfers.
Since the start of 2021, Korea has introduced strict measures against illegal crypto transactions in the country. Korea announced a crackdown against illegal crypto exchanges in the region, but despite all the efforts, unregulated foreign currency transfers involving digital currencies are on the rise.
Crypto Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders can be successful in both low and high volatile environments, but the strategies employed are often different depending upon volatility. Why Too Much Volatility is a ProblemIn the FX space, lower volatile currency pairs offer less surprises, and are suited to position traders.High volatile pairs are attractive for many day traders, due to quick and strong movements, offering the potential for higher profits, although the risk associated with such volatile pairs are many. Overall, a look at previous volatility tells us how likely price will fluctuate in the future, although it has nothing to do with direction.All a trader can gather from this is the understanding that the probability of a volatile pair to increase or decrease an X amount in a Y period of time, is more than the probability of a non-volatile pair. Another important factor is, volatility can and does change over time, and there can be periods when even highly volatile instruments show signs of flatness, with price not really making headway in either direction. Too little volatility is just as problematic for markets as too much, we uncertainty in excess can create panic and problems of liquidity. This was evident during Black Swan events or other crisis that have historically roiled currency and equity markets. In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders can be successful in both low and high volatile environments, but the strategies employed are often different depending upon volatility. Why Too Much Volatility is a ProblemIn the FX space, lower volatile currency pairs offer less surprises, and are suited to position traders.High volatile pairs are attractive for many day traders, due to quick and strong movements, offering the potential for higher profits, although the risk associated with such volatile pairs are many. Overall, a look at previous volatility tells us how likely price will fluctuate in the future, although it has nothing to do with direction.All a trader can gather from this is the understanding that the probability of a volatile pair to increase or decrease an X amount in a Y period of time, is more than the probability of a non-volatile pair. Another important factor is, volatility can and does change over time, and there can be periods when even highly volatile instruments show signs of flatness, with price not really making headway in either direction. Too little volatility is just as problematic for markets as too much, we uncertainty in excess can create panic and problems of liquidity. This was evident during Black Swan events or other crisis that have historically roiled currency and equity markets. Read this Term
In the latest announcement, the Korean lawmaker highlighted the risks associated with volatility in the crypto market. "The fluctuations in value have also led speculative forces to thrive in a short period of time. The volatility widening due to corporate value tied to that of virtual assets necessitates legislative push for greater user protection in the virtual asset market," Song added.
Korean authorities believe that the illegal crypto-related FX transfers have been used for tax evasion and gambling. According to the local laws, unregulated foreign currency transfers are subject to scrutiny under the Anti-Money Laundering Act.
According to a recent study conducted by the Korea Social Opinion Research Institute (KSOI), most South Koreans want the government to tax crypto assets.
South Korea is one of the biggest crypto markets in Asia. The country is home to some of the leading global digital exchanges. But, with growing adoption, the country is facing the issue of illegal crypto-mediated foreign currency transfers.
According to a report published by Korea Herald, Song Jae-ho of the Democratic Party of Korea (DPK) said that Korea registered more than $676 million worth of unregulated crypto-related foreign currency transfers during the first 8 months of 2021. Song added that the data submitted by the Korea Customs Service (KCS) for the National Assembly Finance Committee's audit of the customs agency showed record growth in suspicious crypto-mediated FX transfers.
Since the start of 2021, Korea has introduced strict measures against illegal crypto transactions in the country. Korea announced a crackdown against illegal crypto exchanges in the region, but despite all the efforts, unregulated foreign currency transfers involving digital currencies are on the rise.
Crypto Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders can be successful in both low and high volatile environments, but the strategies employed are often different depending upon volatility. Why Too Much Volatility is a ProblemIn the FX space, lower volatile currency pairs offer less surprises, and are suited to position traders.High volatile pairs are attractive for many day traders, due to quick and strong movements, offering the potential for higher profits, although the risk associated with such volatile pairs are many. Overall, a look at previous volatility tells us how likely price will fluctuate in the future, although it has nothing to do with direction.All a trader can gather from this is the understanding that the probability of a volatile pair to increase or decrease an X amount in a Y period of time, is more than the probability of a non-volatile pair. Another important factor is, volatility can and does change over time, and there can be periods when even highly volatile instruments show signs of flatness, with price not really making headway in either direction. Too little volatility is just as problematic for markets as too much, we uncertainty in excess can create panic and problems of liquidity. This was evident during Black Swan events or other crisis that have historically roiled currency and equity markets. In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders can be successful in both low and high volatile environments, but the strategies employed are often different depending upon volatility. Why Too Much Volatility is a ProblemIn the FX space, lower volatile currency pairs offer less surprises, and are suited to position traders.High volatile pairs are attractive for many day traders, due to quick and strong movements, offering the potential for higher profits, although the risk associated with such volatile pairs are many. Overall, a look at previous volatility tells us how likely price will fluctuate in the future, although it has nothing to do with direction.All a trader can gather from this is the understanding that the probability of a volatile pair to increase or decrease an X amount in a Y period of time, is more than the probability of a non-volatile pair. Another important factor is, volatility can and does change over time, and there can be periods when even highly volatile instruments show signs of flatness, with price not really making headway in either direction. Too little volatility is just as problematic for markets as too much, we uncertainty in excess can create panic and problems of liquidity. This was evident during Black Swan events or other crisis that have historically roiled currency and equity markets. Read this Term
In the latest announcement, the Korean lawmaker highlighted the risks associated with volatility in the crypto market. "The fluctuations in value have also led speculative forces to thrive in a short period of time. The volatility widening due to corporate value tied to that of virtual assets necessitates legislative push for greater user protection in the virtual asset market," Song added.
Korean authorities believe that the illegal crypto-related FX transfers have been used for tax evasion and gambling. According to the local laws, unregulated foreign currency transfers are subject to scrutiny under the Anti-Money Laundering Act.
According to a recent study conducted by the Korea Social Opinion Research Institute (KSOI), most South Koreans want the government to tax crypto assets.