The financial authorities decided to receive account information and transaction information related to cross-border crimes from the virtual asset industry and take measures such as restricting transactions.
The Financial Intelligence Unit (FIU) under the Financial Services Commission (FSC) said on Feb. 7 that it held the "consultative body on analysis and response to virtual asset transactions suspected of involvement in cross-border crimes" with the virtual asset industry at Government Complex Seoul on the 5th and discussed such plans.
According to the Financial Services Commission (FSC), the virtual asset industry will submit suspicious transaction reports to the FIU after a detailed analysis of accounts presumed to be exploited for crimes. Once the reports are received, the FIU plans to take measures so that, after analysis, they can be used for investigations by law enforcement and for asset seizures.
For users suspected of involvement with criminal funds in Southeast Asia, the FIU will additionally verify the source of funds and the purpose of the transaction, and if the explanation is insufficient, it plans to restrict the transaction.
The FIU explained that criminal organizations operating in Cambodia or border areas of Southeast Asia are presumed to be making fund tracing difficult by using external virtual asset wallets where identity verification is difficult, or laundering money by opening virtual asset accounts in the names of victims who were kidnapped or lured.
The FIU plans to introduce a "freeze system for accounts suspected of crime" to prevent funds in accounts suspected of being used for crimes from being withdrawn while authorities are currently investigating. It will also tighten cross-border transaction regulations, including banning transactions with overseas exchanges that pose a high money laundering risk.
Policy Planning Director Yun Yeong-eun said, "The virtual asset industry must not only enhance its own monitoring capabilities but also respond to cross-border crimes abusing virtual assets through a global cooperation framework."