How to avoid arrest for crypto transactions in S. Korea?

South Korea Ministry of Justice released 7 conditions to met in order to make cryptocurrency transactions legal for exchanges
12 December 2017   405

The Ministry of Justice of South Korea is considering the possibility of a complete ban on trading crypto-currencies and digital tokens in order to protect consumers from fraudulent schemes. This is reported by the Nikkei Asian Review.

Blockchain technology can be applied to a wide range of fields in the fourth industrial revolution. We need to find out ways to adopt this new technology quickly as many other countries are rushing to develop this technology.

Choo Kyung-ho
Liberty Korea Party, Rep.

To obtain a legal status, a list of rules is introduced, in case of failure of which the organizers of the exchange or developers will be punished with a prison term of up to 10 years or fined up to 500 million won. For money laundering and fraud, violators face a prison for 10 years or a fine in the form of a threefold amount of illegally obtained funds if they exceed 500 million won.

Operations will be legal only if seven conditions are met:

  1. Deposit of fiat money,
  2. Keeping a reserve on accounts of third-party companies,
  3. Explaining the risks of operations with crypto currency,
  4. Verification of the identity of users,
  5. The creation of a system for countering money-laundering,
  6. The organization of protection of cryptographic keys
  7. Reporting.

The government provides a semi-annual grace period for existing exchanges, during which they are obliged to bring their activities within the framework of the law.

It is expected that this initiative of the Ministry of Justice will meet opposition from other institutions. At a meeting with journalists in late November, Finance Minister Kim Dong-Yong spoke out for the development of crypto-currency technologies, calling them the future of the financial industry.


First real-life cryptocurrency robbery reported in Taiwan

Four men stole 5 million Taiwanese dollar worth of Bitcoin, the police has already arrested the suspects
22 February 2018   55

Bitcoin has attracted lots of unwanted attention from hackers and scammers alike. Recently not a week passes without news of an exchange or user being hacked or some company's computers being hijacked to mine cryptocurrency. And now Taiwanese news outlets report first real-life robbery of Bitcoin in their country.

The robbery took place in Taichung, Taiwan's central city. The police reports three men being involved in the robbery itself and one as a planner. Criminals persuaded the victim to meet with them face-to-face under the guise of being interested in buying Bitcoin from him. After the victim showed the robbers the proof of his bitcoins on his phone, the men attacked him and his friend and transferred 18 bitcoins worth 5 million Taiwanese dollar via the phone wallet.

The suspects then forced the unfortunate seller to drink strong local liquor to make everything look like a drunken fight had taken place. The police arrived at the scene after receiving the reports of a fight and found two victims. Two of the offenders had fled, but the third has been arrested at the scene of the crime. He later provided investigation with information about his accomplices. They were arrested soon after.

The police later apprehended the man believed to be the mastermind behind the plan. All this was released in the yesterday's report by the Taiwanese law enforcement and the case is already viewed as “the first domestic case of bitcoin robbery”. The report doesn't mention if the crypto was returned to the rightful owner.

Similar cases has been rumored to happen in the US, but no records are released as of yet. So the unofficial governmental advice is to be more cautious of the buyers requesting face to face meetings in the light of this event.