Korean Regulators Probe Stablecoin, Money Laundering Link

In a bid to combat money laundering, South Korea's Financial Services Commission (FSC) plans to investigate the extent of stablecoin usage on crypto exchanges, raising concerns about their susceptibility to illicit activities. This probe aligns with the global efforts to crack down on cryptocurrency-related money laundering, following initiatives from authorities such as the US Justice Department, which has appointed a team of prosecutors to lead investigations and prosecutions.

South Korea to Investigate Stablecoin Usage on Crypto Exchanges to Combat Money Laundering

Seoul, South Korea (October 24, 2022) - In a concerted effort to curb money laundering activities, the Financial Services Commission (FSC) of South Korea has announced plans to conduct a comprehensive probe into the volume of stablecoins transacted on cryptocurrency exchanges operating within the country.

Citing heightened concerns among financial authorities regarding the susceptibility of stablecoins to money laundering, the FSC aims to ascertain the extent of their usage on exchanges and assess the potential risks posed to financial integrity.

This investigation is part of a wider global crackdown on the illicit use of cryptocurrencies, with numerous countries and regulatory bodies seeking to sever the ties between digital assets and money laundering.

In a related development, the United States Department of Justice (DOJ) recently established the Digital Asset Coordinator (DAC) Network, a specialized task force dedicated to investigating and prosecuting crypto-related crimes. This initiative brings together a team of specially trained prosecutors from various law enforcement agencies under the leadership of the National Cryptocurrency Enforcement Team.

According to Assistant Attorney General Kenneth Polite Jr., the DAC's mandate is to "ensure that the Department and its prosecutors are best positioned to combat the ever-evolving criminal uses of digital asset technology."

The FSC's investigation and the DOJ's establishment of the DAC Network underscore the growing recognition by law enforcement and regulatory authorities of the need to address the potential for cryptocurrencies to facilitate illicit activities.

South Korea and the US are among the leading jurisdictions in the global effort to combat money laundering through cryptocurrencies. As the regulatory landscape for digital assets continues to evolve, it is anticipated that further measures will be implemented to strengthen safeguards against financial crime.