{"id":32462,"date":"2022-12-16T09:29:34","date_gmt":"2022-12-16T09:29:34","guid":{"rendered":"https:\/\/lydian.io\/?p=32462"},"modified":"2022-12-16T09:29:35","modified_gmt":"2022-12-16T09:29:35","slug":"korean-regulators-are-investigating-banks-worth-over-6-5-billion-tied-to-the-kimchi-premium","status":"publish","type":"post","link":"https:\/\/lydian.io\/korean-regulators-are-investigating-banks-worth-over-6-5-billion-tied-to-the-kimchi-premium\/","title":{"rendered":"Korean regulators are investigating banks worth over $6.5 billion tied to the kimchi premium","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"
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South Korean banks are below investigation for his or her position in facilitating $6.5 billion in suspicious overseas transfers tied to cryptocurrency arbitration companies. <\/p>\n
Based on an Aug. 15 report in Asia Occasions, the Monetary Supervisory Service (FSS) final month ordered an investigation into South Korean banks after figuring out a big variety of overseas remittances in late June.<\/p>\n
The investigation discovered that a lot of the $6.5 billion despatched abroad between January 2021 and June 2022 got here from crypto trade accounts earlier than being despatched in a foreign country, suggesting that some Korean corporations are utilizing the \"Kimchi Bounty (kimp)\" exploit.<\/p>\n
The kimchi premium is the distinction in cryptocurrency costs on South Korean exchanges in comparison with overseas exchanges. Buyers purchase crypto from abroad exchanges and promote them on native Korean exchanges for a revenue. <\/p>\n
Regulators are involved in regards to the kimchi premium commerce because it encourages capital flight in a foreign country. <\/p>\n
At the moment, the kimchi premium is a modest +3.37%, however in response to the promote it was already over +20% in April final yr tracker<\/a> CryptoQuant.<\/p>\n Stories from Shinhan Financial institution and Woori Financial institution revealed that a lot of the funds transferred had been initially transferred from home crypto exchanges to varied company accounts owned by Korean corporations.<\/p>\n These massive transfers have raised alarm that buyers are utilizing huge sums of cash to take advantage of the kimchi bounty, in response to an area information report Aug. 15 outlet<\/a> AsiaTimes.<\/p>\n