South Korean regulators step up fight against crypto crime
South Korea strengthens AML regulations to combat crypto-related crimes.
South Korea is taking decisive action to curb cryptocurrency-related financial crimes by overhauling its Anti-Money Laundering (AML) regulations.
On March 5, 2025, the Financial Intelligence Unit (FIU) of the Financial Services Commission (FSC) convened a high-level meeting to discuss new countermeasures, reports CoinGape.
The gathering, led by FIU Head Park Kwang and the AML Inspection Trustee Council, focused on standardizing AML inspection procedures and rapidly disseminating risk factors associated with emerging money laundering methods such as virtual accounts and easy remittance abuse facilitated by crypto assets.
Focused Regulatory Reforms
During the meeting, representatives from 11 key institutions—including the Financial Supervisory Service, the Ministry of the Interior and Safety, and the Korea Federation of Mutual Savings Banks—contributed to the discussions.
The council’s agenda centered on fortifying protective measures to safeguard citizens’ livelihoods and establishing tailored annual inspection operation plans for each institution. These initiatives come as part of a broader effort to address the growing threat of crypto crimes, following a spate of high-profile incidents such as the recent $1.4 billion Bybit hack, which underscored vulnerabilities in the digital asset ecosystem.
New Initiatives and Global Context
In a further bid to enhance user protection, the FIU plans to form a ‘People’s Livelihood Crime AML Joint Response Team’ in collaboration with the Financial Supervisory Service and other financial institutions. This team will be tasked with detecting AML vulnerabilities and implementing robust safeguards against financial crimes.
The move aligns with global regulatory trends, as both the U.S. SEC and the European Union are actively refining frameworks to promote a secure and innovation-friendly crypto environment. Meanwhile, Upbit Operator Dunamu’s recent appeal against the FIU’s business suspension order has added urgency to South Korea’s regulatory response.
By modernizing its AML policies, South Korea aims to not only protect its financial system but also ensure that its digital asset market remains competitive and secure. As crypto-related crimes continue to challenge regulators worldwide, South Korea’s proactive measures may serve as a model for other jurisdictions seeking to balance innovation with robust financial oversight.
Recently we wrote, that South Korean prosecutor's office has officially launched a specialized unit for investigating crypto crimes.
