A warning was issued on the banknotes of Chinese bitcoins. Recently, as the price of bitcoin has risen sharply, cases suspected of being’fans’ are increasing rapidly. To this, some banks are actively responding, such as sending out an official letter to their branch offices saying “Refuse the remittance”. However, there is no way to block foreign exchange transactions without any other physical evidence, so there is also an atmosphere of contemplating countermeasures.
According to banknotes on the 12th, Chinese people who are trying to remit money overseas are increasing at each commercial bank branch. Although we haven’t done business with the bank in the meantime, there are increasing cases of 4-5 people coming to China with cash and asking for remittance.
Usually, they visit a bank to remit money close to the maximum annual limit of overseas remittances of $50,000 (12 days, 56.25,000 won).
In the banking sector, he said in one voice that the series of appearances in recent branches were similar to the case of bitcoin exchange in 2018.
Currency exchange (illegal foreign exchange transaction) is a method in which an account is created in two countries with different currencies, deposited into an account in one country, and withdrawn in local currency from another country according to the exchange rate of the country. For example, after opening an account in Korea and China, remittances in Korean won in Korean won and withdrawal in yuan without going through a foreign exchange bank. It is a method of privately trading foreign exchange without a fee for exchange, avoiding the supervision of the foreign exchange authorities, and is regarded as an outflow of national wealth and is prohibited by law.
A recent phenomenon at bank branches is that it is suspected that the Chinese people’s’bitcoin fanfare’ using a so-called’kimchi premium’, which means the difference in the bitcoin market price between Korea and overseas, is suspected. Bitcoin is traded about 15% more expensive in Korea than overseas.
In the banking sector, they buy bitcoin in yuan in China, pay only the transfer fee to the domestic exchange, sell bitcoin in Korea, and send it back to China with a profit.
An official from Bank A said, “We are predicting that in 2018 it will be a bitcoin exchange,” and an official from Bank B also said, “There seems to be an increasing number of remittance cases due to investment in cryptocurrency aiming for a kimchi premium.”
The reason why banks suspect that Chinese remittances are “bitcoin exchange” is that people with no transaction history are asking for remittances of unidentified source or purpose.
As the number of suspected bitcoin exchanges increases, the banking sector is also struggling to come up with a countermeasure. Some banks even sent an official letter to their branch offices asking them to refuse the remittance if they suspected a war.
A bank official said, “If the source of the funding is strange, I sent an official letter to inform me to’go to the main bank’ or to respond’It is difficult because the authorities restrict (remittance)’.” An official from Bank B also said, “When remittance overseas, we have guided us to thoroughly confirm the purpose of the transaction and the reason for the remittance, regardless of the amount.” An official of C Bank also said, “We have given guidelines to remit funds less than 50,000 dollars a year without supporting documents, but only when the source of the funds can be verified.”
However, some point out that there is a limit to the internal guidelines alone.
An official at D Bank said, “If the recipient is an individual and the sender claims to pay the living expenses, it is difficult for practitioners to refuse the remittance because it cannot be verified.” An E Bank official also said, “As expressed as suspicious transactions, financial institutions only report the status of’suspicious transactions’, and there is no way to block foreign exchange transactions because we cannot secure physical evidence of illegal property, so we are considering countermeasures.”
