According to a report released on Wednesday by the Financial Intelligence Unit, the number of reported suspicious transactions from cryptocurrency service providers in South Korea grew by 48.8% in 2023 compared to 2022.
These transactions, which are believed to involve activities such as money laundering, market manipulation, or illegal drug trades, reached a total of 16,076 cases.
The FIU attributed this increase to increased communication with local firms, encouraging them to report suspicious activity. The report also stated that the FIU has referred 90% more suspected crypto crime cases to law enforcement agencies for investigation.
In an effort to crack down on these activities, the FIU is working on implementing a new system that will immediately suspend suspicious virtual asset transactions before local prosecutors can investigate. The preliminary research for this system is expected to be completed by March 2023.
