South Korea flagged 36,684 suspicious crypto transactions from January through August 2025.
The tally already exceeds 2023 and 2024 combined. It sets a clear new high for South Korea suspicious crypto transactions this decade.
Yonhap News cited Financial Intelligence Unit (FIU) data and Korea Customs Service (KCS) statistics.
Local virtual asset service providers (VASPs) submitted FIU STRs under current rules. The filings covered exchanges and other VASPs operating in the country.
Previous years show the climb. STRs were 16,076 in 2023 and 19,658 in 2024. In 2021, authorities logged 199 cases.
2022 recorded 10,797. The growth places South Korea suspicious crypto transactions in sharp focus for 2025.
FIU STRs surge under South Korea AML rules
South Korea’s anti money laundering (AML) law requires financial firms to report risks. The mandate covers banks, casinos, and VASPs.
They must file suspicious transaction reports (STRs) when activity suggests criminal proceeds or terrorist financing.
The FIU collects and analyzes FIU STRs for patterns. It shares leads with investigators when indicators align. This process helps connect separate alerts across different VASPs.
Therefore, the higher FIU STRs count signals active monitoring. Compliance teams escalated more cases as patterns evolved. The data underscores how South Korea AML oversight tracks flows across platforms.
Hwanchigi illegal remittances dominate flows
Officials said most alerts involved hwanchigi illegal remittances. Actors convert funds into crypto on offshore platforms. Then, they route assets into domestic exchanges and cash out in won.
From 2021 through August 2025, the Korea Customs Service KCS referred $7.1 billion in crypto-linked crimes to prosecutors.
About $6.4 billion, near 90%, tied to hwanchigi illegal remittances. The numbers anchor South Korea suspicious crypto transactions to foreign exchange schemes.
The KCS focus targets brokers and conversion points. It also examines the path from offshore wallets to local VASPs. These nodes define how hwanchigi moves value at scale.
Tether USDT case connects South Korea and Russia
In May 2025, customs officials reported an underground broker using Tether USDT. The network allegedly moved about $42 million between South Korea and Russia. The activity relied on stablecoin transfers and rapid settlement.
Investigators accused two Russian nationals of making over 6,000 illegal transactions. The period ran from January 2023 to July 2024. The flow matched hwanchigi mechanics seen in other cases.
The Tether USDT case highlighted stablecoin rails in South Korea suspicious crypto transactions. It also illustrated how frequent small transfers aggregate into large totals. The details fed back into FIU STRs risk models.
Korea Customs Service KCS and FIU face pressure to track flows
Representative Jin Sung-joon urged tighter coordination by the FIU and Korea Customs Service KCS.
He called for stronger tools to trace criminal funds. He also pressed agencies to block disguised remittances earlier in the process.
Jin Sung-joon asked for systematic countermeasures against new foreign exchange crimes. The request referenced faster data sharing. It also suggested clearer role splits between the FIU and KCS.
This push aligns with 2025 data on FIU STRs and South Korea suspicious crypto transactions.
Rising alerts require triage, case building, and timely referrals. The agencies remain central to that workflow.
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Global context MiCA stablecoin caps and central bank limits
The European Union’s Markets in Crypto-Assets (MiCA) framework tackles cross-border risks. MiCA requires licensing, disclosure, and reserves for issuers.
It also imposes MiCA stablecoin caps of 1 million transactions per day or €200 million in daily value.
In 2021, European Central Bank policymakers discussed a digital euro holding limit of €3,000 per person.
The idea aimed to manage flows between bank deposits and the digital euro. It sits alongside the MiCA stablecoin caps as a control layer.
In 2023, the Bank of England proposed digital pound caps between £10,000 and £20,000 per user.
UK crypto groups criticized strict ceilings. However, the debate frames how caps may shape stablecoin and central bank digital currency adoption.
Disclosure:This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Kriptoworld.com accepts no liability for any errors in the articles or for any financial loss resulting from incorrect information.
Tatevik Avetisyan is an editor at Kriptoworld who covers emerging crypto trends, blockchain innovation, and altcoin developments. She is passionate about breaking down complex stories for a global audience and making digital finance more accessible.
📅 Published: August 4, 2025 • 🔄 Last updated: August 4, 2025
