South Korean Intelligence Unit Finds 16,000 Suspicious Crypto Transactions Throughout 2023
South Korea's Financial Intelligence Unit (FIU) has revealed an increase in suspicious crypto transactions by up to 50% during 2023.
The latest findings by the FIU unveil a total of 16,076 cases of transactions. It is also noted that the volume of reports related to suspected crypto-related crimes surged by around 90% in 2023 compared to the previous year.
The surge in reported suspicious transactions was attributed to increased involvement of the FIU with local cryptocurrency service providers.
The institution urged these entities to report dubious activities, strengthening South Korea's defense against financial crimes that have long plagued the digital asset ecosystem.
Despite uncovering these reports, the FIU did not provide specific information on who was involved in the suspicious transactions, citing Certain Financial Information Act.
As part of its ongoing initiative to enhance the detection and prevention of financial crimes, the FIU is developing a system designed to promptly suspend suspicious virtual asset transactions pending further investigation, with plans to complete preliminary research by March of this year.
Read Too : Gold ETF Sees $2.4 Billion Outflow as Bitcoin ETF Surges
South Korean FIU Strategy Boosts Crypto Reporting
An essential element of the FIU strategy is fostering closer cooperation with financial institutions and law enforcement agencies to enhance the quality and effectiveness of suspicious transaction reporting.
This includes categorizing financial flows associated with virtual asset crimes to streamline the detection process.
The FIU is reported to have made significant progress in its analytical system, incorporating functions enabling more detailed examination of virtual asset transactions, including wallet address tracking and transaction history.
Moving forward, the FIU intends to enhance its capabilities in combating new and emerging financial crimes. This will involve leveraging existing resources and systems to focus on crimes involving virtual assets, illegal private finance, narcotics, and gambling.
The FIU also plans to enhance its workforce and technical systems, including developing virtual asset analysis systems for more advanced tracking and analysis of virtual asset transactions.
This FIU initiative is one of several steps South Korea is taking to create a conducive crypto industry. It was previously reported that the nation will enforce the Virtual Asset User Protection Act in July 2024.
The rules include severe penalties for those involved in illegal crypto acquisition, including life imprisonment for violations exceeding US$3.7 million.
Read Too : MicroStrategy Profits Rp63 Trillion from Bitcoin Accumulation
*Disclaimer:
This content aims to enrich reader information. Always conduct independent research and use disposable income before investing. All buying, selling, and crypto asset investment activities are the reader's responsibility.
