South Korea FSC Goes After Crypto Whales To Ensure AML Compliance

• S. Korea FSC has realized that stablecoins might become a primary tool for laundering using digital assets.
• Attention should be brought to crypto whales with worthy crypto assets and stablecoins.
  

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South Korea’s financial watchdog, the Financial Service Commission (FSC), is to monitor crypto whales who have assets worth over 100 million won ($70,000) to prevent money laundering efforts using digital assets.

The FSC has noted that the more virtual assets and stablecoins a person holds, the higher the risk of money laundering. This is because large amounts of cryptocurrency can be easily transferred across borders without leaving a trace, making it ideal for criminals to use to launder money.

The FSC is also concerned about the use of stablecoins in money laundering. Stablecoins are a type of cryptocurrency that is pegged to a fiat currency, such as the US dollar. This makes them more stable than other cryptocurrencies, which makes them more attractive to criminals who want to move large amounts of money without attracting attention.

The FSC’s new guidelines for monitoring crypto whales will require virtual asset service providers (VASPs) to collect information on their customers, including their identity, address, and the source of their funds. VASPs will also be required to report any suspicious transactions to the FSC.

In addition to monitoring crypto whales, the FSC is also recommending that VASPs monitor retail customers who make heavy deposits. Customers who make large deposits should be monitored for any significant changes in their holdings every quarter.

South Korea has taken a tough stance on cryptocurrency regulation in recent months. In the wake of the collapse of the Terra-LUNA ecosystem, the FSC has vowed to bring in stricter regulations for the cryptocurrency industry. The FSC has also said that it plans to introduce cryptocurrency legislation by early 2024.

The FSC’s new guidelines for monitoring crypto whales are a sign that the regulator is serious about preventing money laundering in the cryptocurrency industry. The guidelines are also a reminder to crypto investors that they need to be aware of the risks of money laundering when they invest in cryptocurrency.