Crypto becomes gateway for money laundering amid investor craze
Concerns are growing that cryptocurrencies are increasingly being used as a means of money laundering and illegal foreign exchange (FX) transactions, a ruling party lawmaker said Monday. The development comes amid surging popularity of cryptocurrency investment, with the number of digital asset holders surpassing 10 million for the first time. This also increases the regulatory challenge of balancing innovation with investor protection, since a surge in suspicious transaction reports without timely crackdowns can fuel illicit cross-border activities involving Korean won-denominated stablecoins. According to data submitted to Rep. Jin Sung-joon of the ruling Democratic Party of Korea, the Korea Financial Intelligence Unit (KoFIU) received 36,684 reports of suspicious activity from virtual asset service providers from January to August. The figure has seen an explosive increase from 199 in 2021, surpassing 10,000 in 2022 and hitting nearly 20,000 in 2024. Over the same period, crypto-linked crimes referred for prosecution totaled sums of more than 9.5 trillion ($7.1 billion). Over 90 percent
