The South Korean Financial Services Commission (FSC) has warned that it is going to monitor investors’ transactions with crypto assets worth more than 100 million won ($70,000).
The South Korean supervisory authority assured that the monitoring is aimed at preventing money laundering through digital assets. In accordance with the new recommendations, it is planned to pay special attention to the monitoring of large investors. Particular attention of the regulator will be directed to the use of stablecoins as the preferred tool for money laundering, the FSC says.
According to officials, it is stablecoins, especially those that are most widely distributed among users, that are more likely to be used as a tool for committing crimes:
“Private digital assets sometimes do not meet the listing criteria for crypto exchanges, in which case, when they are listed, the risk of money laundering on trading platforms increases significantly.”
In addition to monitoring crypto whales and their activities, the regulator recommends keeping an eye on retail clients placing large deposits. According to the regulator, clients who make large crypto transactions should be checked every quarter for any significant changes in assets:
“Clients with large volumes of digital assets are at higher risk of money laundering.”
South Korea is known for its strict cryptocurrency policy, especially after the collapse of the Terra project. Recently, the country’s prosecutor’s office announced that it intends to detect illegal cryptocurrency transactions using a “virtual currency tracker” that traces the sources of asset movement.
Source: Bits
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