South Korea’s Financial Service Commission will keep an eye on cryptocurrency “whales” with holdings worth more than KRW$100M (US$70,600) It aims to stop any illegal or money-laundering behaviour.
- The Financial Service Commission of South Korea has announced new regulations for the cryptocurrency market requiring the surveillance of owners of more than $100 million won in this asset class in cryptocurrency holdings. This is one of the measures the financial regulator is taking to implement AML and aims to prevent money laundering.
- According to reports by local media, the FSC stated that a greater percentage of digital assets and stablecoins is associated with a higher risk of money laundering. Therefore, under the new Anti-Money Laundering guidelines, additional attention should be paid to monitoring crypto whales with substantial holdings of digital assets and stablecoins.
- The report also indicated that stablecoins, particularly ones widely utilized by the general population, are more likely to be employed in criminal activity.
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Crypto Whales Facing Extensive AML Rules
- South Korea is renowned for its stringent enforcement of crypto-related rules, particularly in the aftermath of the Terra ecosystem’s collapse. Its financial authorities have intensified their work to safeguard investors and pass crypto law by the beginning of 2024.
- The Financial Intelligence Unit (FIU) of South Korea recently completed a study on cryptocurrency exchanges focusing on AML breaches and requirements related to countering terrorist funding. FIU is an organization that works to stop money laundering and unauthorized financial transfers.
- The agency concluded that there was not enough compliance with these standards. It has promised to report on illicit transactions and behaviors frequently. Additionally, it motivates exchanges to set up a suitable AML system.
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