Cryptocurrency-related crimes increased dramatically in South Korea in 2023!

South Korean authorities have reported a significant increase in suspicious transactions related to cryptocurrencies. According to the Financial Intelligence Unit (FIU), there was a 48.8% increase in such cases last year compared to 2022.

Crypto Crime Cases Increased by 49% in 2023 in South Korea

The country recorded 16,076 cases of crypto transactions in 2023 that were suspected to be linked to activities such as money laundering, market manipulation or illegal drug trade.

FIU attributes this growth to active communication with local companies, encouraging them to report suspicious activity.

Additionally, the FIU announced that the number of suspected cryptocrime cases forwarded to law enforcement for investigation increased by 90% compared to the previous year.

In response to this trend, the FIU plans to establish a new system that will immediately suspend suspicious virtual asset transactions pending investigation by local prosecutors. FIU aims to complete preliminary research to adopt this system by March this year.

In a related development, the Korean Customs Office announced that approximately 88% of illegal currency transactions involve virtual assets.

Some of these transactions reportedly used cryptocurrencies to hide payments and evade taxes, according to local news agency Yonhap. Thereupon, the customs administration established a new team to combat cryptocurrency crimes.

Last week, the Financial Services Commission, South Korea’s top financial regulator, issued a warning against crypto criminals.

With the country’s new law to protect crypto investors coming into force on July 19, those who engage in illegal market activities could face severe criminal penalties, including life imprisonment.

*This is not investment advice.