South Korean Regulators Will Closely Watch Crypto Whales

South Korean Regulators Will Closely Watch Crypto Whales

South Korean regulatory authorities will monitor crypto whales against money laundering. 

The financial regulatory watchdog of South Korea, the Financial Service Commission (FSC), is reportedly planning to monitor the transactions of large investors (whales) who own cryptocurrency, according to a local report

South Korean Authorities Want to Track Crypto Whales

The regulatory body believes that stablecoins and cryptocurrencies are easy means of laundering money without a trace and would therefore like to prevent such illicit transactions.

A special unit of the FSC called the Financial Intelligence Unit (FIU) would allegedly monitor crypto whales, especially those with holdings worth over 100 million won, approximately ($70,000). They intend to closely monitor stablecoins alongside other digital currencies. “Stablecoins are more likely to be utilized as a means of crime,” FSC said.

In addition, the FIU will track users who deposit large quantities of digital assets, given that large-volume transactions are usually susceptible to anti-money laundering breaches.

FSC Holds Meeting With FSS on Market Monitoring 

Earlier this month, the FSC held a meeting with the Financial Supervisory Service (FSS) to discuss the impact of the Bank of Korea’s recent interest rate hike (+50 bp) on financial markets and financial institutions. They also discussed the response strategies to mitigate risk.

In order to ease volatility in stock markets, the financial agencies both agreed to ensure a timely reactivation of the stock market stabilization fund by promptly carrying out additional purchase agreements with institutional investors.

While continuously watching market situations, authorities will spare no effort to prepare for the timely implementation of additional market stabilization measures in need. However, as market uncertainties remain high regarding some external risks, the financial authorities agreed to maintain efforts to enhance the ability to respond preventively to risk factors.

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