According to South Korea’s Financial Intelligence Unit (FIU), local virtual asset exchanges reported a 49% increase in suspicious transactions to the FIU in 2023 compared to 2022. On February 14, the FIU released its 2024 Work Plan summary, sharing key data and strategic initiatives for overseeing the crypto market.
The FIU actively encourages crypto exchanges to report transactions raising suspicions of money laundering and illegal foreign exchange outflow. In 2023, local crypto exchanges submitted 16,076 reports, a 49% rise from 10,797 in 2022. Total suspicious transactions, not limited to crypto assets, increased by 10.2%.
The press release notes a 90% increase in notifications about suspected crypto crimes in 2023. However, due to the Specified Financial Information Act, the FIU doesn’t disclose details on such notifications or specify whether they originated from crypto exchanges.
The FIU highlights handling 100 cases of unregistered crypto loan businesses, transferred to the National Tax Service and the National Police Agency. These cases were identified based on suspicious transaction data accumulated in December 2023 and January 2024.
In 2024, the FIU plans to expand and reinforce its crypto team, offering education and training. The agency will launch a virtual asset analysis system for tracking and analyzing transaction details and complex movement paths.
The FIU introduces a preemptive trading suspension system for suspicious transactions, freezing transactions even during the pre-investigation phase. This aligns with The Korea Times’ earlier report. On February 7, the Financial Services Commission announced potential life imprisonment for crypto criminals with over $3.8 million in illegal profits.
