You may have heard that gangers are using English school teachers to move their currency for them in Korea. English teachers are now clandestine – arbitrageurs and they are buying the coins in various countries before sending the to Korea. You can send currency like this by using decentralised cryptocurrencies that are stateless and they are very easy to transport across the border. The main reason for this is because they can be sent by people swapping their wallets and passwords. The trader then sells the coins for a huge profit on the exchange. The trader isn’t usually picky about the assets that he has and this is because he is able to arbitrage them in this way. The trader in question usually aims to buy the coins which have the highest percentage gap. This means that if a coin is 90% in the US, it will sell for 100% in Korea in terms of value. The coins that are being traded most by English teachers include Bitcoin, Ripple and Ethereum. The main trader behind all of this scheme is only 28 years old. He lives in Seoul, and he used to run an export and import business that specialised in technology product. He has stated that he used to import various products from countries such as Alibaba and even Kickstarter. He would then sell them online to countries such as Korea. 2 months ago, he happened to see a jo posting on the platform Upwork. Some Dutch, experienced traders wanted to find a partner who may be able to sell coins in Korea to try and take advantage of the Kimchi Premium. The trader had worked with the Dutch partners for quite some time. He learnt how the trade worked and he eventually decided that he would like to try this for himself.
He came out to say that what the Dutch people wanted was boring to say the least. The scheme relied solely on a regulated bank transfer and this was even more risky than it needed to be. On top of this, they had no brokers either and this meant that the transactions were slow and that they had their own limits. A search on the Korean Observer brought up an advertisement that was looking for a partner in the crypto arbitrage. When he did a search on Upwork he then found multiple listings for people who were looking to partake in things like this. The crypto scene in Korea is full of rumours of things like this and they tend to rise and fall according to the prices of Bitcoin. The higher the Bitcoin price is, the higher the premium will be and the more money people will get for it when they sell it in Korea. Andrew Kim happens to work for the firm EY and he has come out to say that there are so many schemes out there that give people the chance to profit from things like this.
The schemes all run on the fact that there are paid crime syndicates out there. They all want to take cash overseas and they want to do it for tourism purposes a well. You also have money laundering schemes from Chinese travellers as well and all of this is fuelling the fire. Some of the Chinese travellers have been working as Bitcoin miners as well. They mine and then they sell the Bitcoin that they have on the Korean exchange. They also exchange the won that they have for yuan and they have so many miniature stalls set up to try and accommodate this. They are commonly found on the streets but they are starting to become more and more mainland. Chinese miners however are in somewhat of a bind and the main reason for this is because trading has been banned in their location. They do however have to convert their cryptocurrency into yuan so that they can pay their bills. The sum of these amounts are absolutely huge, so there is in fact a lot of risk with this. The trader in question was then asked if he was afraid of breaking the rules or even getting caught. It is safe to say that this could trigger an uncomfortable conversation with the tax authorities and he may even be sent to prison for this as well. He has stated that it is okay for him to buy Bitcoin as long as he does not get caught in dealing with the brokers. What they are doing is not risky but if they get caught together and in action then this could trigger some consequences.