South Korean crypto providers have a net profit of USD 2.7 billion for 2021

South Korean crypto providers have a net profit of USD 2.7 billion for 2021

South Korean virtual-asset-service provider (vasps) achieved according to A survey within the most important financial supervisory authority of Land.

The survey announced on Tuesday is the first of its kind since Vasps had to register with Korea Financial Intelligence Unit (Kofiu) last year changed Law on reporting and use of certain financial transaction information.

The goal of the survey, argues Kofiu, is to get a better understanding of the cryptocurrency market based on statistical data that is provided by individual entrepreneurs.

By the end of December 2021, a total of 29 vasps had received approval, including 20 “Coin-Only” exchanges, five crypto wallets and four Korean won exchanges. Since then, this number has grown by two more wallets Coin-Nur Exchange, which increases the total number of vasps working in South Korea to 33.

It was found that Korean Won-based stock exchanges their dominated coin-Nur competitors in relation to the market share with a 99.3%influence on domestic operating profits compared to 0.7%. A little coin-only exchanges could be subjected to restructuring, said the watchdog.

The Kofiu was founded in 2001 and is an organization within the Financial Services Commission, the task of which is to monitor and monitor the financial markets and to implement guidelines to combat money laundering.

In the second half of 2021, the total transactions on 24 "Exchange for virtual assets" were astonishing 2.073 billions of KRW ($ 1.7 trillion) with an average daily transaction amount of 11.3 trillion KRW (9.4 billion US dollar), according to the survey.

Regulation in the country has slowly developed since FSC banned the use of money procurement by ICOs in 2017. Although some local supervisory authorities still believe that the applicable laws are not yet sufficient to counteract money laundering practices, especially since the trading volume for crypto begins.

"Although the market for virtual assets carries high risks of money laundering, the current status for the proportion of AML employees (8 %) is inadequate and must be improved."

South Korea occupies 16th place in relation to the introduction of crypto with 1.9 million people or 3.79 % of its 55.7 million inhabitants who have any form of crypto systems Data from Payment providers triple a .

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The contribution South Korean Crypto Providers Book $ 2.7b net profit for 2021 is not a financial advice.