South Korean Crypto Whales Will Be Monitored To Stop Money Laundering

Crypto whales with assets worth more than 100 million won will be under the scrutiny of South Korea‘s Financial Service Commission. It aims to stop any illegal activities or money laundering.

The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market that require surveillance of holders of more than 100 million won ($347,000) in this asset class of digital currency. One of the various measures the financial regulator is doing to implement AML is an endeavor to ensure that there is no money laundering.

According to the report, stablecoins in particular are likely to be used for illegal activities and that “the larger the share, the higher the risk of money laundering.” It says in the report:

“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 evaluated that the risk of money laundering of virtual asset operators with a high proportion of the virtual asset is high.”

The FSC is taking yet another action to impose market regulations. The nation was shaken by the demise of the Terra biosphere. Now, authorities are working harder than ever to protect investors.

AML regulations are strict for crypto whales

The Financial Intelligence Unit (FIU) of South Korea is an organization that works to stop money laundering and unauthorized fund transfers. It recently completed a study on cryptocurrency exchanges with a focus on AML violations and requirements related to countering terrorism financing.

The agency came to the conclusion that there was not enough compliance with these standards. It has promised to frequently report on illicit transactions and behaviors. Additionally, it motivates exchanges to set up a suitable AML system.

These guidelines include how to look for questionable transactions and what to do if one is found. An investigation must be conducted, for instance, if someone withdraws 500M won ($350,000) in just 10 minutes. The exchange risked a fine of over 30M won for failing to disclose suspicious activities.

South Korea wants no room for money laundering

South Korea has taken extra care to prevent money laundering through the cryptocurrency sector. The Financial Action Task Force (FATF) assembly is where the FSC gathered with other federal agencies to discuss AML and counter-terrorism financing initiatives.

The FSC chief also urged prudence when it came to permitting domestic businesses to enter the cryptocurrency industry. In the meantime, the Financial Supervisory Service’s governor said that cryptocurrency might be governed by securities legislation.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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