Financial Supervisory Service, Banknote ‘Overseas Cryptocurrency Exchange’ Check the remittance details


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The Financial Supervisory Service initiates a check on whether the banknotes are remitted to overseas cryptocurrency exchanges. This is the first inspection conducted by financial authorities on banknotes after the cryptocurrency market overheated.

Starting with Hana Bank this week, the Financial Supervisory Service is going to check whether it is remittance to overseas cryptocurrency exchanges. If the Financial Supervisory Service determines that the scale of remittances to overseas exchanges for cryptocurrency investment is large and proper verification has not been performed during this process, it is possible to conduct a full investigation on banknotes.

On the 3rd, an official from the financial authorities said, “There was a discussion that it was impossible to transfer foreign currency to (cryptocurrency overseas) exchanges. Told.

The banking sector has been blocking remittances to foreign exchanges for cryptocurrency investment since 2018. Banknotes receive lists of overseas cryptocurrency exchanges from time to time and check the recipients to block remittances.

However, it is pointed out that banks can only check the recipient, so that remittances to overseas cryptocurrency exchanges cannot be fundamentally blocked. For example, if the recipient does not have a coin (COIN), etc., it is difficult to prevent the remittance if it is specified as a general company.

An official from the banking sector said, “The bank is making a tight net to check whether it is remittance to overseas cryptocurrency exchanges, but there are limitations.” Another official also said, “We are blocking remittances to overseas cryptocurrency exchanges by checking only the recipient.”

Accordingly, the Financial Supervisory Service conducts a sector inspection to determine how much remittance is being made in the banknote. This is a measure to thoroughly block the act of targeting a kimchi premium that is re-selling in Korea after remittance to overseas exchanges to purchase cryptocurrency.

It is also interpreted as an act of pressing the banking sector to more thoroughly block overseas remittances for cryptocurrency investments.

Banknotes have recently restricted non-face-to-face overseas remittances by themselves. When the monthly accumulated remittance amount exceeded US$ 10,000, Shinhan Bank asked the head office or branch to submit documents such as proof of income and check whether the funds were owned.

Woori Bank is also limiting the limit of overseas remittances through direct overseas remittance accounts of Woori Union Quick Remittance to $10,000 per month to prevent suspicious non-face-to-face overseas remittance transactions. Hana Bank has also lowered the HanaEZ limit for non-face-to-face overseas remittances to $10,000 per month.

The Financial Supervisory Service starts with a sector inspection of Hana Bank. An official from the banking sector said, “Because Hana Bank has many foreign currency trading positions, it seems that Hana Bank is starting with a sector inspection.” Another banking official said, “If the scale of remittances to overseas cryptocurrency exchanges is large as a result of a sector inspection on Hana Bank, why not do a thorough investigation on all banknotes?”

The Financial Supervisory Service is also expected to look into whether it has violated the foreign exchange transaction law in the sector inspection.

When the Financial Supervisory Service attempted to initiate a check on whether banks were remitted to overseas exchanges, some pointed out that the financial sector was’governmental misconduct.’ It means that only banknotes are pressured without any regulations to prevent overseas remittances for cryptocurrency investment. Moreover, since the legal status of cryptocurrency is not clear, even if a remittance is made from a bank to an overseas exchange, it is not a violation of the Foreign Exchange Transaction Act.

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