South Korea Mulls Regulation On Virtual Asset Mixers

In a bid to curb illicit financial activities, South Korea is contemplating the introduction of regulations on virtual asset mixers, also known as crypto blenders, notorious for their role in money laundering. The country’s Financial Intelligence Unit (FIU) is mulling over measures to address the misuse of mixers by criminal organizations. Notably, this move comes as global concerns grow about the potential misuse of these technologies.

South Korea’s Battle Against Crypto Money Laundering

South Korea’s Financial Intelligence Unit of the Financial Services Commission (FSC) is reportedly gearing up to regulate virtual asset mixers, commonly known as crypto blenders, which have become a haven for money launderers. According to an industry report, the lack of specific sanctions against crypto mixers in Korea has prompted the authorities to consider restrictions on transactions involving these technologies.

Meanwhile, a report by Decenter cited an FIU official expressing concern on the matter. Acknowledging the substantial threat of money laundering facilitated by virtual asset mixers, the Financial Intelligence Unit official expressed concern and said that the regulators “sympathize with the problem” and recognize the high risks of money laundering through the virtual asset mixers. Meanwhile, the report showed that the authorities are considering strict crypto regulations for crypto mixers to curb illicit financial activities.

In other words, the virtual asset mixers, designed to protect user privacy, have now turned into tools for hackers and criminal organizations to launder money.

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Domestic Concerns and Global Cooperation

The Virtual asset mixers are known for their service in splitting and mixing virtual assets, making it challenging to trace funds and monitor illicit activities. Notably, the United States has already taken steps to regulate mixers, introducing anti-money laundering (AML) regulations last year.

Meanwhile, the report showed that even domestic companies are not immune to virtual asset-related crimes. The recent hacking of $81 million worth of virtual assets from a domestic blockchain company, Ozis, has raised concerns.

Notably, market experts suggest that mixers might have been involved in this crime. While South Korea initiates discussions on regulation, establishing a comprehensive system will take time due to the international nature of mixers. According to the report, the FIU emphasizes the need for global cooperation, stating, “Mix is ​​an issue shared internationally, so cooperation from each country is necessary.”

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Rupam, a seasoned professional with 3 years in the financial market, has honed his skills as a meticulous research analyst and insightful journalist. He finds joy in exploring the dynamic nuances of the financial landscape. Currently working as a sub-editor and crypto journalist at Coingape, Rupam’s expertise goes beyond conventional boundaries. His contributions encompass breaking stories, delving into AI-related developments, providing real-time crypto market updates, and presenting insightful economic news. Rupam’s journey is marked by a passion for unraveling the intricacies of finance and delivering impactful stories that resonate with a diverse audience.

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