Crypto whales in Korea come money laundering monitoring
The Financial Service Commission of South Korea will monitor crypto whales with more than 100 million won in assets. It seeks to prevent money laundering or illegal activity.
South Korea’s Financial Service Commission has announced new rules for the crypto market that require monitoring of crypto holders who have more than 100 million won ($347,000) in the asset class. This is an attempt to ensure no money laundering takes place, one of the many steps the financial regulator is taking to enforce AML.
It says that “the larger the share, the higher the risk of money laundering” and believes that stablecoins in particular are likely to be used for criminal purposes. The report reads,
“In the case of an independently listed virtual asset, it is possible that it did not meet the listing criteria of other virtual asset operators, and it can be considered that the risk of money laundering by virtual asset operators with a high proportion of the virtual asset asset is high.”
This is another step by FSC to enforce some rules on the market. The collapse of the Terra ecosystem rocked the country. Officials have now redoubled efforts to ensure investor protection.
Crypto whales face extensive AML regulations
South Korea’s Financial Intelligence Unit (FIU) is an agency dedicated to preventing money laundering and illicit financial flows. It recently conducted an investigation into crypto exchanges focusing on AML breaches and counter-terrorism financing obligations.
The agency concluded that there was insufficient compliance with these requirements. It has said it will regularly expose illegal transactions and activities. It also encourages the exchanges to establish a proper AML system.
These rules cover how to check for suspicious transactions and what to do in the event of a breach. For example, if someone withdraws 500 million won ($350,000) in 10 minutes, an investigation must take place. If the exchange does not report suspicious activity, it can result in a fine of almost 30 million won.
South Korea will have no room for money laundering
South Korea has been particularly keen to ensure that money laundering does not occur through the crypto market. The FSC met with other government agencies in the Financial Action Task Force (FATF) assembly to discuss efforts related to AML and counter-terrorist financing.
The head of the FSC also called for caution in allowing domestic companies to enter the crypto market. Meanwhile, the governor of the Financial Conduct Authority has said that crypto may be subject to securities laws.
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