South Korea’s Tax Authority, DAXA Form Committee to Prevent Illegal Transactions: Report

Last updated: January 8, 2024 06:04 EST . 1 min read

Disclosure: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. By using this website, you agree to our terms and conditions. We may utilise affiliate links within our content, and receive commission.Source: PixabaySouth Korea’s tax Authority, the Korea Customs Service group and five major cryptocurrency exchanges including Bithumb Korea, Coinone, Korbit, and Streami have formed a group to prevent illegal foreign transactions, according to a report by News1.KR

The Digital Asset Exchange Association (DAXA), is comprised of the five most prominent cryptocurrency exchanges in South Korea including Upbit, Bithumb, Coinone, Korbit, and Gopax. DAXA plays an advisory role concerning the new committee.

DAXA is the industry’s most important self-regulating body in South Korea. The DAXA members are the only exchanges in the country with the operating permits required to offer fiat-won trading.

Korea Customs Service was formed in 1970 and is run under the Ministry of Economy and Finance and is headquartered in Seo District, Daejeon in South Korea.

According to News1.KR, the newly formed committee will respond to any actions initiated around illegal foreign exchange transactions linked to cryptocurrencies. The committee will discuss ways to cooperate with regulators and organizations in South Korea as well as listen to concerns and opinions about illegal foreign transactions.

FSC Clamps Down on Money Laundering

Recently South Korea’s Financial Services Commission announced plans to clamp down on the illegal outflow of funds overseas. The commission put forward a ban on using credit cards to purchase cryptocurrency to stop money laundering.

In December, an announcement was made by DAXA that it would team up with financial regulators to search for “undeclared crypto operators.”

The Asian country continues to dominate the headlines, just hours before New Year’s Eve, Orbit Bridge, which serves as the main bridge for the Claytont eco, was exploited for nearly $82 million hours. Multiple South Korean agencies are currently investigating the multi-million hack.

Allegations have emerged identifying North Korea’s hacking group, ‘Lazarus,’ as the orchestrator of the exploit, ing several South Korean National Intelligence Service (NIS) to intervene for a comprehensive investigation.