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Highlights
- South is strengthening AML regulations to tackle growing crypto-related crimes.
- The FIU convened a meeting discuss the possible measures to mitigate crypto threats.
- The regulator is planning to establish a 'People's Livelihood Crime AML Joint Response Team.'
South Korea’s Financial Intelligence Unit (FIU) is strengthening its Anti-Money Laundering laws to mitigate financial crimes involving cryptocurrencies. The FIU of South Korea’s Financial Services Commission hosted a meeting to discuss countermeasures against new money laundering methods.
Let’s explore the potential strategies South Korea may employ and their implications for the global crypto landscape.
South Korea’s FIU Enhances AML Laws: What to Know
According to the latest media report, South Korea is set to undergo a significant regulatory revamp, with a focus on strengthening Anti-Money Laundering (AML) regulations. This move comes in response to the increasing number of money laundering cases and crypto crimes.
On March 5, 2025, the Financial Intelligence Unit under the Financial Services Commission (FSC) of South Korea convened a meeting. Notably, the AML Inspection Trustee Council chaired by FIU Head Park Kwang, concentrated on examining AML regulations and shared inspection plans with key agencies. The regulators remain dedicated to tackling crypto thefts and new money laundering methods.
AML Inspection Trustee Council: Top Discussions
Notably, South Korea’s FIU is taking proactive steps to combat novel money laundering methods such as virtual accounts and easy remittance abuse. As per the FIU’s findings, these crimes have been facilitated by the establishment of cryptocurrencies.
Significantly, FIU’s AML Inspection Trustee Council prioritizes standardizing AML inspection procedures. This is to rapidly disseminate critical risk factors associated with money laundering. The recent meeting concentrated on the necessity of revamping AML rules in response to the growing crypto threats.
Along with Chief Park, AML inspection officers from 11 key institutions, including the Financial Supervisory Service, Ministry of the Interior and Safety, and Korea Federation of Mutual Savings Banks participated in the meeting. The discussion centered around two main objectives: fortifying measures against crimes that affect livelihoods and establishing annual inspection operation plans tailored to each institution.
This development comes on the heels of Upbit Operator Dunamu’s appeal against the FIU. Dunamu sought to cancel the FIU’s business suspension order.
South Korea Fosters User Protection: Key Strategies
As part of the current program, South Korea’s FIU is planning to establish a ‘People’s Livelihood Crime AML Joint Response Team’ in collaboration with the Financial Supervisory Service and other financial institutions. The team’s efforts will center on detecting AML vulnerabilities and implementing measures to strengthen resilience against financial crimes.
South Korea’s current initiatives align with the global trend of regulatory reforms to combat crypto crimes. The US SEC is making efforts to establish a regulatory framework that guarantees both crypto growth and user protection. The European Union is also taking proactive measures to foster a healthy crypto environment.
These enhanced regulatory measures are a direct response to the mounting cryptocurrency fraud. Recently, the crypto space suffered a major blow with the $1.4 billion Bybit hack, a breach that ranks among the largest crypto thefts ever.
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