March 28, 2024

South Korean authorities are going to monitor the transactions of large crypto investors

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South Korean authorities are going to monitor the transactions of large crypto investors

South Korea Financial Services Commission (FSC) warned that it was going to monitor investors' transactions with crypto assets amounting to more than 100 million won ($70,000).

The South Korean supervisory authority has assured thatmonitoring is aimed at preventing money laundering through digital assets. In accordance with the new recommendations, special attention will be paid to monitoring large investors. The regulator will pay special attention to the use of stablecoins as the most preferred tool for money laundering, the FSC says.

According to officials, it is stablecoins thatespecially those that are most widely distributed among users are more likely to be used as a means to commit crimes:

“Private digital assets sometimes do not meet the listing criteria for crypto exchanges, in which case listing them increases the risk of money laundering on trading platforms significantly.”

In addition to monitoring crypto whales and theiractivity, the supervisor recommends monitoring retail clients placing large deposits. According to the regulator, clients who make large crypto transactions should be monitored every quarter for any significant changes in assets:

“Customers with large amounts of digital assets are at higher risk of money laundering.”

South Korea is known for its strict policiesregarding cryptocurrencies, especially after the collapse of the Terra project. Recently, the country's prosecutor's office announced that it intends to identify illegal cryptocurrency transactions by using a “virtual currency tracker” that tracks the sources of asset movements.