Suspect Transactions: South Korean Crypto Exchanges Report 49% Increase in 2023
The Financial Intelligence Unit (FIU) advocates vigilance, leading to a spike in reported suspicious transactions.
In a notable development, South Korea's Financial Intelligence Unit (FIU) revealed a substantial surge in reported suspicious transactions on local digital asset exchanges. According to the FIU's latest data, there was a 49% increase in such transactions in 2023 compared to the previous year.
The FIU, in its work plan summary for 2024 published on February 14, disclosed vital information and outlined strategic initiatives aimed at enhancing oversight of the crypto market. A pivotal aspect of these efforts involves actively encouraging crypto exchanges to promptly report transactions that arouse suspicions of money laundering and illegal "foreign exchange outflow."
This proactive approach resulted in a significant uptick, with local crypto exchanges submitting 16,076 reports in 2023, up from 10,797 in 2022. It's worth noting that the overall number of suspicious transactions, encompassing various assets beyond cryptocurrencies, saw a 10.2% increase.
The FIU, while acknowledging a 90% surge in notifications related to suspected crypto crimes in 2023, refrained from providing specifics due to the Specified Financial Information Act. Additionally, the agency did not clarify whether these notifications also originated from crypto exchanges, akin to reports on suspicious transactions.
Notably, the enforcement agency identified and referred 100 cases of unregistered crypto loan businesses to the National Tax Service and the National Police Agency. These cases were identified based on the FIU's analysis of suspicious transaction data accumulated between December 2023 and January 2024.
Looking ahead, the FIU outlined plans to "expand and reinforce" its crypto team in 2024, emphasizing the importance of education and training. The agency also aims to introduce a "virtual asset analysis system," designed to track and analyze intricate details of virtual asset transactions and their "complex movement paths."
A recent report by The Korea Times hinted at the FIU's intention to implement a preemptive trading suspension system for suspicious transactions on platforms operating in South Korea. This system, as confirmed in the latest release, will freeze transactions even during the pre-investigation phase. In a related move on February 7, the Financial Services Commission, another Korean regulator, declared that crypto criminals dealing with over $3.8 million in illegal profits could face up to life imprisonment.
(Photo Source / Blockonome)
Comments