Crypto News- In a recent report by the Financial Intelligence Unit (FIU) on Wednesday, South Korea witnessed a staggering 48.8% increase in reports of suspicious cryptocurrency transactions compared to the previous year. The FIU disclosed that they received a total of 16,076 reported cases of crypto transactions suspected of involvement in illicit activities like money laundering, market manipulation, or illegal drug trades throughout 2023.
South Korea’s Crypto Crime Reports Surge by 49% in 2023
Explaining the surge in reported cases, the FIU emphasized its proactive engagement with local cryptocurrency service providers, urging them to promptly report any suspicious activities. Additionally, the FIU noted a significant 90% year-over-year growth in the number of suspected crypto crime cases handed over to law enforcement agencies for investigation.
Taking a step further, the FIU revealed plans to implement a new system aimed at immediately suspending suspicious virtual asset transactions, pending investigation by local prosecutors. According to the report, preliminary research for adopting this system is slated for completion by March this year.
South Korea Intensifies Efforts to Combat Crypto Crime Amid Surge in Suspicious Transactions
Meanwhile, the Korea Customs Office unveiled alarming statistics indicating that approximately 88% of illegal foreign exchange transactions involve virtual assets, with some exploiting cryptocurrencies to conceal transaction settlements and evade taxes. To combat this growing threat, the customs authority has established a dedicated team to address cryptocurrency-related crimes.
Amidst these developments, the Financial Services Commission, South Korea’s top financial regulator, issued a stern warning to crypto criminals. With the impending enforcement of the country’s new law for the protection of crypto investors on July 19, perpetrators of illicit market acts could face severe criminal penalties, including life imprisonment. As authorities ramp up efforts to safeguard the integrity of the crypto market, stringent measures are being put in place to deter and punish wrongdoers.
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