South Korea Sees 49% Rise in Suspicious Crypto Transactions, FIU to Expand Oversight
Summary:
The Financial Intelligence Unit (FIU) in South Korea reported a 49% rise in suspicious transactions from local virtual currency exchanges in 2023 compared to 2022. This increase is part of an ongoing initiative to combat money laundering and illicit foreign exchange activities. Overall dubious transactions, including cases beyond those involving cryptocurrency, also rose by 10.2% in the same period. The FIU plans to expand its crypto team and launch a "virtual asset examination system" that will track and analyze crypto transactions. The FIU also aims to implement a proactive trade suspension system to improve market surveillance.
The South Korean Financial Intelligence Unit (FIU) revealed that the country's local virtual currency exchanges recorded a 49% surge in suspicious transactions in 2023 compared to 2022, according to the FIU's annual report released on February 14. This increase is part of the FIU's ongoing effort to encourage crypto exchanges to report any transactions that may suggest money laundering or illicit foreign exchange outflows. The total number of reports from local cryptocurrency exchanges in 2023 was 16,076, a significant increase from the 10,797 reports filed in 2022. Additionally, overall dubious transactions, comprising more than just crypto-related cases, saw a marginal 10.2% rise in the same period. The FIU also reported almost double the number of suspicious crypto-related crimes in 2023 compared to the previous year, but it did not disclose further details due to the Specified Financial Information Act. The FIU has also pointed out 100 instances of unregistered crypto lending businesses and passed them to the National Tax Service and the National Police Agency. The cases were spotted from the annual suspicious transaction data gathered by the FIU towards the end of 2023 and the beginning of 2024. The FIU is set to amplify its efforts in 2024, with plans to strengthen its crypto team through appropriate training and education. The organization also plans to establish a "virtual asset examination system" that will allow them to track and scrutinize virtual asset transaction specifics and intricate movement pathways. As previously reported by The Korea Times, the FIU looks to improve surveillance in the virtual currency market by implementing a proactive trade suspension system, which has been further reinforced by its most recent announcement. Meanwhile, the Financial Services Commission, a different Korean regulatory body, stated on February 7 that individuals involved in crypto-crimes amassing over $3.8 million in illicit gains could face imprisonment for life.
Published At
2/14/2024 1:57:32 PM
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