While global online game companies are being abused for illegal online gaming operations in Asian countries, the $100 billion underground market is growing in Korea, using third-party bank accounts and complex structures to provide online gaming services.
Philippines, 8th Oct 2023 – There are so many companies around the world that legally register licenses with the government and provide online gaming services. Some global gaming companies are big enough to be listed on the London Stock Exchange (LSE) or Nasdaq.
However, the way they make money in some of Asian countries is illegal, and they are all aware of this and neglect it. Looking at the structure of online gaming companies, there is an online gaming company called “Service Provider” at the top, and there are agent companies called “Regional Resellers” below it. Most of these “Regional Resellers” are from countries where online gambling is illegal, such as China, Korea, and Japan. Most of them establish companies in Manila, the Philippines, and supply online gaming games by customizing them to suit each country. One might ask why it’s illegal, but what’s really serious is that these resellers use third-party bank accounts to deposit and withdraw game money from the country that provides the service.
The business management methods of illegal reseller companies in Korea are as follows:
- First, a corporation is established in Manila, Philippines, and service resale contracts are signed with global online gaming providers.
- The API received from the providers is transferred to one platform. This is because Korean customers want to play games from several companies on one platform. The platform produced by Resellers includes all games supplied by dozens of providers, which is convenient for customers.
- There are hundreds or thousands of agencies under Reseller, who pay monthly maintenance or share profits from Reseller and illegal online gaming services.
- The illegal gaming sites actually operated by agencies all have different domain addresses and customized landing pages. Their role is to promote to customers, operate customer centers, and use third-party bank accounts to deposit and withdraw players’ game money.
Korea’s illegal game market is growing at a rapid pace day by day, and recently, these illegal gaming funds are a large market worth 100 billion USD a day. “It’s simple to investigate Payment Gateways, which offer virtual accounts to make deposits and withdrawals for gambling, along with hiding abroad and catching online gaming resellers illegally,” said a police-turned-expert in South Korea. Illegal use of KRW for online gaming in Korea is expected to disappear soon, and from December, police and prosecutors are said to be tracking voice phishing, gambling, and drug funds.
Most advanced countries, such as Europe and North America, deposit and withdraw online gaming money through electronic money issuers or cryptocurrency such as USDT rather than depositing in local currency. In particular, cryptocurrency is highly preferred because all processes are transparently and safely traded, and it is safe because it does not violate any country’s laws. Purchasing cryptocurrency can be done through global cryptocurrency exchanges or using crypto P2P platform companies is also a good way to do so.
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