Amid a warning about bitcoin exchange using so-called’Kimchi Premium’ recently, banknotes have set limits on remittances in China.
On the 19th, in order to prevent suspicious non-face-to-face overseas remittance transactions, Woori Bank decided to limit the limit of overseas remittances through direct overseas remittance accounts during Woori Union Quick Remittance to $10,000 per month.
Previously, it was limited to $5,000 per case, $10,000 per day, and $50,000 per year, but a new limit of $10,000 per month was newly established.
If remittances are made at the bank counter, suspicious overseas remittances can be restricted through evidential documents, but there is a limit to non-face-to-face transfers, and such measures were taken. Woori Bank has decided to maintain the restriction on the monthly remittance limit until a separate notice.
Such measures are likely to spread to other banks. Some banks have already sent an official letter to their branch offices asking them to refuse remittances if they are suspected of being warped.
According to the banking sector, the number of suspected cases of bitcoin exchange by Chinese people using the so-called’Kimchi Premium’, which means the difference in the bitcoin market price between Korea and abroad, has recently increased.
There have been an increasing number of cases of Chinese people who do not have a record of dealings with the bank, rushing in each of 4 to 5 people with cash and requesting a remittance to China. They are suspected of buying bitcoin in Chinese renminbi, sending it to a domestic exchange, selling bitcoin in Korea, gaining a profit, and sending the money back to China. Bitcoin is sold at about 15% more expensive in Korea than overseas.
They usually visit banks to remit money close to the maximum annual limit of overseas remittances of $50,000 per person (55.93 million won on the 19th). Recently, as the number of suspicious cases of warring has increased, some banks are refusing remittance by giving instructions to’go to the main bank’ if the source of the funds is judged to be strange.
As the possibility of illegal activities such as money laundering using rising virtual asset prices has increased recently, the government decided to set April-June as a’special crackdown period at the level of the criminal government’ and jointly crack down on illegal activities, etc.
Accordingly, the Financial Services Commission requires financial companies to closely monitor when withdrawals occur after a virtual asset transaction, and the Financial Information Analysis Agency (FIU) promptly analyzes suspected illegal transactions related to virtual assets and notifies investigative agencies and tax authorities. It was decided to strengthen the coordination system for enforcement investigation.
The Ministry of Strategy and Finance plans to strengthen inspections of violations of related laws such as the Foreign Exchange Transaction Act with the Financial Supervisory Service, and the police will intensively crack down on illegal activities such as multi-level illegal and investment fraud. In addition, it plans to reinforce the expertise of the investigation, such as subdividing the department in charge of each type of virtual asset illegal activity and expanding the distribution of virtual asset tracking programs.
The Financial Supervisory Service is also reviewing countermeasures, including the establishment of guidelines for overseas remittance of virtual assets.
