Suspicious crypto transactions in South Korea hit two-year total
According to South Korea’s Financial Intelligence Unit (FIU), the country has seen a sharp increase in suspicious cryptocurrency transactions.
From January to August 2025, crypto platforms submitted 36,684 suspicious transaction reports (STRs) to the FIU. By comparison, there were 16,076 in all of 2023 and 19,658 in 2024. This means the eight-month figure has already exceeded the combined total of the previous two years.
Customs Service data shows that between 2021 and August 2025, prosecutors handled cases worth about ₩9.56T ($7B) tied to crimes involving cryptocurrencies. Illegal capital outflows via crypto accounted for ₩8.62T of that, or more than 90% of the total.
National Assembly member Jin Sung-joon stressed the need for tougher oversight: “As stablecoins play a bigger role in settlements, the risk of their use in currency crimes rises. Coordinated action by the FIU and Customs is needed to track and block suspicious transfers.”
Previously, GNcrypto reported that South Korea is opening new opportunities for the industry. Beginning September 16, virtual asset trading and brokerage firms can apply for venture company status, unlocking tax breaks, government financing, and R&D support previously off-limits to crypto businesses. The Ministry of SMEs and Startups lifted a 2018 ban on venture certification, citing stricter licensing rules and new user protection laws that have reshaped the market.
Customs Service data shows that between 2021 and August 2025, prosecutors handled cases worth about ₩9.56T ($7B) tied to crimes involving cryptocurrencies. Illegal capital outflows via crypto accounted for ₩8.62T of that, or more than 90% of the total.
Authorities noted that stablecoin Tether (USDT) is increasingly being used in such schemes. In May 2025, regulators uncovered a case in which an illegal exchanger sent about ₩571B ($418M) in USDT to Russia, bypassing the banking system.
National Assembly member Jin Sung-joon stressed the need for tougher oversight: “As stablecoins play a bigger role in settlements, the risk of their use in currency crimes rises. Coordinated action by the FIU and Customs is needed to track and block suspicious transfers.”
Democratic Party lawmaker Jin Sung-joon. Source: yna.co
The surge in STRs shows that South Korea is facing a new wave of financial crime, with cryptocurrencies becoming a key tool for laundering money and moving funds across borders illegally.
Previously, GNcrypto reported that South Korea is opening new opportunities for the industry. Beginning September 16, virtual asset trading and brokerage firms can apply for venture company status, unlocking tax breaks, government financing, and R&D support previously off-limits to crypto businesses. The Ministry of SMEs and Startups lifted a 2018 ban on venture certification, citing stricter licensing rules and new user protection laws that have reshaped the market.
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