DIGIVESTASI - South Korea's Financial Intelligence Unit (FIU) expects suspicious crypto transactions to increase by 50% by 2023. 

Based on the FIU's latest findings, there were 16,076 transactions. It also stated that by 2023, the number of reported crimes related to cryptocurrencies increased by about 90% compared to the previous year.  The increase in detected suspicious transaction reports came as the FIU increased its cooperation with local cryptocurrency service providers. 

The agency is urging these companies to report suspicious activity as South Korea strengthens its defenses against financial crimes that have long plagued the digital asset ecosystem. The FIU found the reports but did not provide specific information on who was involved in the suspicious transactions, citing the Specified Financial Information Act. 

As part of our ongoing efforts to strengthen financial crime detection and prevention, the FIU is developing a system to immediately suspend suspicious virtual asset transactions pending further investigation. The preliminary investigation is expected to be completed by March this year.  

South Korea's FIU strategy boosts cryptocurrency reports

A key part of the FIU's strategy is to foster closer cooperation with financial institutions and law enforcement agencies to improve the quality and effectiveness of suspicious transaction reporting. This includes categorizing financial flows associated with virtual asset crime to simplify the detection process. 

The FIU has reportedly made significant progress in its analytical systems, incorporating features that enable deeper examination of virtual asset transactions, such as wallet address tracking and transaction history. In the future, the FIU intends to enhance its capabilities in combating new financial crimes. This includes leveraging existing resources and systems to focus on crimes related to virtual assets, illicit private finance, drugs and gambling. 

The FIU also plans to modernize its workforce and technology systems, including the development of a virtual asset analysis system for more sophisticated tracking and analysis of virtual asset transactions. This FIU initiative is one of the various steps South Korea is taking to create a profitable cryptocurrency industry. As previously reported, the country plans to implement the Virtual Asset User Protection Act by July 2024.

It imposes severe penalties for those involved in the illegal acquisition of virtual currencies, including life imprisonment for crimes involving more than $3.7 million.

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