HashKey Gears Up to Offer Trading Service to Retail Traders

Almost 60K Korean Crypto-Holding Households Owe $389M in Unpaid Social Insurance PremiumsThe National Health Insurance Service (NHIS) in South Korea is intensifying its efforts to collect overdue premiums. Many high-income individuals who can afford to pay premiums for social insurance, including health insurance, have been neglecting their dues.Photo by Hush Naidoo Jade Photography on UnsplashVirtual assets for seizureAccording to the documents submitted on October 18 by the NHIS to lawmaker Jung Choun-sook, a member of the National Assembly’s Health and Welfare Committee, the NHIS is actively identifying a range of assets, including copyrights and virtual assets, that can be seized from these individuals. The NHIS aims to recover overdue premiums through stringent measures such as confiscation and government auctions. This move is designed to deter high-income earners from neglecting their obligations, ensuring fairness for those who consistently pay their premiums.Almost 60,000 crypto-holding householdsThis year, the NHIS discovered that 59,513 households, despite owning virtual assets, had outstanding social insurance premiums amounting to KRW 525 billion ($389 million). The NHIS has initiated collection efforts. In 2021, the insurance agency identified 5,336 households with virtual assets that had unpaid social insurance premiums totaling KRW 62.2 billion. Of this, the NHIS successfully collected KRW 6.92 billion, representing 11.13% of the total arrears.On this matter, lawmaker Jung highlighted that the government should strive to bolster the NHIS’s financial health. She underscored the importance of identifying concealed income sources or assets, like cryptocurrency holdings, of premium defaulters to ensure the collection of their overdue premiums.

Coinone Hires Former FSS Official as Head AuditorKorean crypto exchange Coinone has established an audit department and recruited a former director general of the Financial Supervisory Service (FSS) as head auditor, according to local news outlet Moneytoday. This comes in an effort to establish a permanent internal control system and enhance communication with financial authorities.Photo by Hunters Race on UnsplashBringing in a seasoned expertAccording to industry sources on Wednesday, Coinone recently signed an audit contract with the official, who is now the highest-ranking auditor to be hired by a crypto exchange. It was reported that they had retired from the FSS just last week.The new auditor has an extensive career in financial regulation, starting as an investigator at the Bank of Korea’s Legal Affairs Office, and then holding multiple leadership positions at various departments in the FSS, such as the Bank Supervision Department and the Financial Consumer Protection Department. More recently from 2020 to 2021, they served as the Director of the General Affairs Department. During their comprehensive 30-year tenure at both establishments, they gained expertise in the supervision of financial enterprises.Coinone’s dedication to regulatory complianceThey are expected to start their duties at Coinone soon, shortly after the end of the recent Chuseok holiday. The decision to hire them was strongly influenced by its commitment to auditory regulation, the exchange said, emphasizing the need for internal control and preemptive risk management during the complex process of establishing itself as a formal business.Considering the continued tightening of regulations on cryptocurrencies in Korea, such as the enactment of the Virtual Asset User Protection Act and the introduction of guidelines for accounting and reporting on trading cryptocurrencies, Coinone also said that it is determined to actively engage with financial authorities through the new auditor.“This move reflects the intention to build practical expertise in audit services with FSS personnel who have professional knowledge in the area,” an industry insider commented.

Two Russian nationals have been referred to prosecutors in South Korea for allegedly facilitating the illegal transfer of roughly 58 billion won ($42.2 million) to Russia using USDT, a U.S. dollar-pegged stablecoin. According to a report by KBS News, the Seoul branch of the Korea Customs Service (KCS) announced the charges on May 22, citing violations of the country’s Foreign Exchange Transaction Act. The suspects, a man and a woman both in their 40s, reportedly operated an unauthorized money exchange business to carry out the transactions.Photo by Polina Tankilevitch on PexelsOver 6K transactionsAuthorities suspect the pair of repeatedly using USDT to conduct cross-border transfers between South Korea and Russia. From January 2023 to July 2023, the duo allegedly completed 6,156 illegal remittance transactions, either sending funds abroad or receiving payments on behalf of others, totaling the full 58 billion won in question. Investigators revealed that the two suspects, who hold permanent residency in South Korea and have overseas Korean status, used the messaging app Telegram to solicit clients. When transferring money to Russia, they reportedly collected funds via kiosks in convenience stores that allow users to send money without a bank account. The collected cash was then used to purchase USDT to complete the remittances. According to customs officials, the suspects would either send the cryptocurrency directly to a crypto wallet specified by the customer, or forward it to accomplices in Russia. These accomplices would then convert the crypto to cash and distribute rubles to recipients through local channels. Illicit crypto use by businesses The operation also handled export payments for South Korean businesses. The suspects reportedly accepted payments from Russian importers on behalf of Korean used car dealers and cosmetics exporters. In these cases, associates in Russia would collect ruble payments from importers, convert the funds into USDT and send the cryptocurrency to contacts in Korea. The funds were then exchanged for Korean won and deposited into the accounts of the businesses. Customs officials believe that the group’s services became particularly appealing after the start of the Russia-Ukraine war in 2022. In the wake of U.S. and international sanctions against Russia, legitimate financial channels for cross-border transactions became restricted, prompting some companies and individuals to turn to illegal alternatives. The Korean export companies involved in these transactions have been fined. The Seoul Customs Office emphasized that illegal money exchange operations are often exploited for criminal activities such as drug trafficking, voice phishing and gambling. In response, the agency committed to stronger enforcement and pledged to spare no effort in combating unlawful financial operations. Scams grow inside the borderThe surge in crypto-related financial crimes in South Korea extends beyond cross-border transactions. According to a recent report by Maeil Business Newspaper, Kakao Pay—a local mobile payment platform—has detected around 70,000 cases of malicious apps linked to virtual assets over the past month. Of those, 80% were associated with Ponzi schemes, where fraudsters lure victims with promises of high returns before disappearing with the funds. A Kakao Pay spokesperson noted that new forms of security threats are emerging alongside the rapid growth of the crypto market, adding that the company is prioritizing the development of stronger security systems.