Crypto Whales Come to Korea Money Laundering Surveillance

The Financial Services Commission in South Korea will oversee crypto whales with over 100 million winnings in assets. It attempts to prevent any money laundering or illegal activity.

South Korea’s Financial Services Commission has announced new rules for the crypto market that mandate monitoring of crypto holders who have more than 100 million won ($347,000) across the asset class. In an effort to ensure that there is no money laundering, the financial regulator is taking several steps to enforce the AML.

It says that “the larger the ratio, the greater the risk of money laundering” and believes that stablecoins in particular can be used for criminal purposes. the report reads,

“In the case of an independently listed virtual property, it is possible that it does not meet the listing criteria of other virtual property operators, and it may be assessed that the virtual property operators’ risk of money laundering is higher than that of the virtual property. The asset with the ratio is high.”

This is another step by the FSC to enforce certain regulations on the market. The collapse of the Terra ecosystem shook the country. The authorities have now doubled their efforts to ensure the safety of investors.

Crypto whales facing broader AML regulations

South Korea’s Financial Intelligence Unit (FIU) is an agency dedicated to preventing money laundering and illegal fund flows. It recently conducted a survey on crypto exchanges focusing on AML breaches and counter-terrorism financing obligations.

The agency concluded that there was insufficient compliance as far as these requirements were concerned. It has said that it will regularly disclose illegal transactions and activities. It also encourages exchanges to put in place a proper AML system.

These rules deal with how to investigate suspicious transactions and what to do in the event of a breach. For example, if a person withdraws 500 million ($350,000) won in 10 minutes, there must be a check. If the exchange fails to report suspicious activity, it could result in a fine of around $30 million.

South Korea wants no place for money laundering

South Korea in particular has been keen to ensure that there is no money laundering through the crypto market. The FSC met with other government agencies at the Financial Action Task Force (FATF) meeting to discuss efforts related to AML and counter-terrorism financing.

The head of the FSC also called for caution with regard to allowing domestic companies to enter the crypto market. Meanwhile, the governor of the Financial Supervisory Service stated that cryptocurrencies may be subject to securities laws.


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