The department has seized around 25 billion won ($22 million) in digital assets from 676 of the alleged tax evaders.
The premium measures the spread between bitcoin's price on Korean exchanges and other venues.
The government's "special enforcement period" stems from a new crypto-related law that took effect this year.
Bitcoin lost ground after Upbit suspended KRW deposits and withdrawals.
Bitcoin is drawing the highest "kimchi premium" in three years, indicating retail frenzy in South Korea.
South Korea may not be planning to ban cryptocurrencies, but its regulatory regime may only favor the biggest incumbents.
NFTs have been a controversial topic of late due to their large carbon footprint caused by a proof-of-work consensus mechanism.
An exchange spokesperson said the new anti-money laundering regime would make it too tough to continue operating.
Crypto companies have until September to register with financial regulators.
Penalties will apply if trading venues fail to follow three regulations, the Financial Services Commission said.
Bank of Korea Governor Lee Ju-yeol isn’t bullish on bitcoin, but he sees potential in a central bank digital currency (CBDC), if it’s done right. Speaking at a press conference on Thursday, Lee said that when it comes to a CBDC, it’s better to do it right than do it fast, citing the cautious approach […]
The move will aid South Korea's OTC securities market.
Some legal changes would be needed before a potential central bank digital currency launch in South Korea, research indicates.
Caving to pressure from retail traders, South Korea's ban on short-selling has been extended through May 2021.
The team of investigators requested past data and transaction details from Korea Digital Exchange.