According to South Korea’s Financial Intelligence Unit (FIU), local digital asset exchanges reported 49% more suspicious transactions in 2023 than in 2022.
On Feb. 14, the FIU published the summary of its work plan for 2024, in which it shared crucial data and strategic initiatives for crypto market oversight.
The FIU has been actively encouraging crypto exchanges to report any transactions that raise suspicions of money laundering and illegal “foreign exchange outflow.”
As a result, there were 16,076 reports by local crypto exchanges in 2023, up from 10,797 in 2022. In comparison, the number of total suspicious transactions, including but not limited to crypto assets, increased by 10.2%.
The FIU also stated that the number of notifications about suspected crypto crimes rose by approximately 90% in 2023 from a year-to-year perspective. However, the FIU did not disclose any details on the notifications due to the Specified Financial Information Act, nor did it specify whether such notifications have also come from crypto exchanges, as in the case of suspicious transactions.
Related: Japan’s regulator suggests ‘stopping’ P2P transfers from fiat to crypto
The enforcement agency also counts 100 cases of unregistered crypto loan businesses, which it has handed over to the National Tax Service and the National Police Agency. All cases were tracked based on yearly suspicious transaction data accumulated by the FIU in December 2023 and January 2024.
The FIU intends to “expand and reinforce” its crypto team in 2024, providing the necessary education and training. The agency also plans to launch a “virtual asset analysis system,” tracking and analyzing virtual asset transaction details and “complex movement paths.”
Days before the FIU’s official release, The Korea Times reported that the agency would introduce a preemptive trading suspension system for suspicious transactions on platforms already operating in South Korea. This will freeze transactions even during the pre-investigation phase. The latest release confirms this information.
On Feb. 7, another Korean regulator, the Financial Services Commission, announced that crypto criminals dealing with more than $3.8 million in illegal profits could face up to life in prison.
Magazine: Big Questions. How can Bitcoin payments stage a comeback?