South Korean regulator to prevent crypto money laundering attempts

The crypto business has seen an increase in the use of crypto assets throughout the years. This is because transactions involving virtual assets do not require the intervention of third parties, making it easier for criminals to succeed.

However, regulators are paying more attention to the crypto space. They intend to use cryptocurrency to restrict the growth of illicit activities such as money laundering and terrorism financing.

Most watchdogs have established regulatory structures to track and enforce compliance with anti-money laundering laws (AML).

South Korean regulators have increasingly toughened their position on AML compliance in digital assets. As a result, the Financial Service Commission (FSC), the country’s financial regulator, is now concentrating on crypto whales.

It is focusing on investors with assets valued at more than 100 million won ($70,000) in order to reduce the use of digital assets in money laundering.

As per the FSC, the risk of money laundering increases with the possession of more digital assets and stablecoins.

According to a local media report, the watchdog is acting under new anti-money laundering criteria. This entails closely monitoring digital asset whales who have large holdings of stablecoins and other virtual assets.

The usage of stablecoins in money laundering is expanding, according to the report. This is especially noticeable with stablecoins that are mostly used by the general people.