April 19, 2024
South Korean Crypto Exchanges Report 50% Surge in Suspicious Transactions
Latest Cryptocurrency News

South Korean Crypto Exchanges Report 50% Surge in Suspicious Transactions

South Korea’s Financial Intelligence Unit (FIU) has revealed a startling increase in suspicious transactions reported by local crypto exchanges, indicating a growing concern over money laundering and illegal activities within the cryptocurrency market.

According to the FIU’s latest findings, the number of suspicious transactions reported by South Korean virtual asset exchanges surged by 49% in 2023 compared to the previous year. The FIU has been actively urging these exchanges to remain vigilant and report any transactions that raise suspicions of illicit activities, including money laundering and illegal foreign exchange outflow.

In a press release issued on Feb. 14, the FIU disclosed that a total of 16,076 suspicious transactions were reported by local crypto exchanges in 2023, marking a significant increase from the 10,797 cases reported in 2022. This surge in reported cases highlights the heightened scrutiny placed on crypto transactions by regulatory authorities.

Furthermore, the FIU revealed that notifications regarding suspected crypto crimes saw a staggering 90% increase in 2023 compared to the previous year. However, due to legal constraints, the FIU did not provide additional details on these notifications or specify whether they originated from crypto exchanges.

The enforcement agency also disclosed that it had identified and handed over 100 cases of unregistered crypto loan businesses to the National Tax Service and the National Police Agency. These cases were uncovered through the analysis of suspicious transaction data collected by the FIU.

Looking ahead, the FIU outlined its plans to bolster its crypto team and enhance education and training initiatives. Additionally, the agency intends to launch a virtual asset analysis system to track and analyze transaction details and detect complex movement patterns within the cryptocurrency market.

In a related development, The Korea Times reported that the FIU would introduce a preemptive trading suspension system for suspicious transactions, freezing transactions during the pre-investigation phase. This measure aims to curb illicit activities within South Korea’s crypto platforms.

Moreover, the Financial Services Commission announced on Feb. 7 that crypto criminals involved in illegal activities exceeding $3.8 million could face life imprisonment, underscoring the government’s firm stance against financial crimes in the cryptocurrency space.

As regulatory scrutiny intensifies, South Korean authorities are taking decisive steps to safeguard the integrity of the crypto market and protect investors from fraudulent activities.

Image by Mohamed Hassan from Pixabay

Related posts

South Korea’s FSS Chief Plans Crypto Regulation Talks with SEC Chair Gensler

Bran Lopez

Legal Battle Over Sam Bankman-Fried’s Luxury Jets Intensifies Amid Fraud Allegations

Harper Hall

Binance Halts UK User Registrations Due to FCA Mandate

Eva Moore

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More