South Korean Crypto Exchanges Report Over 16,000 Transactions to Authorities
In 2023, South Korean crypto exchanges reported more than 16,000 transactions to local authorities, indicating an increase compared to previous years. The Financial Intelligence Unit (FIU) has been actively working to combat money laundering and other illicit financial activities involving cryptocurrencies.
FIU’s Efforts and Future Plans
The FIU has outlined its efforts in tackling financial threats related to crypto assets. Its plan for 2024 focuses on four key areas, including inspections of financial firms and internal anti-money laundering measures. The roadmap also prioritizes user protection among digital asset business operators and the implementation of an anti-money laundering system compliant with international standards.
Increase in Regulatory Efforts
The financial regulator is urging crypto exchanges and platforms to report suspicious activities due to a rise in incidents last year. The number of suspicious transaction reports by crypto asset companies increased by 49% from the previous year, with a total of 906,000 reports. Additionally, the number of crypto asset cases rose from 10,797 in 2022 to 16,076 in 2023.
Efforts by South Korea’s Crypto Industry
South Korea has been taking steps to combat cryptocurrency scams and protect investors. The country plans to block unlicensed crypto exchanges and has implemented regulations against illegal trading and market manipulation. The Virtual Asset User Protection Act will also be enforced later this year. Authorities have imposed restrictions on both crypto firms and private traders, aiming to ensure compliance with regulations.
The collaboration between the FIU and various stakeholders in the Web3 ecosystem has contributed to these milestones. Improved communication channels with crypto-related companies and the establishment of a dedicated workforce for analyzing flagged crypto transactions have strengthened regulatory efforts.
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