- South Korea’s FIU has outlined measures to tighten its AML laws in the coming year.
- It plans to focus on firms that have not been recently inspected for AML compliance.
Cryptocurrency hacks have been far from reducing over the past months. Following a short dormancy during the end of 2024, the sector witnessed the huge Bybit hack in February. This hack occurred on February 22 and experienced a loss of $1.4 billion worth of funds. Particular investigators alleged that the North Korean Lazarus group was behind the hack.
Recently, news about South Korea’s Financial Intelligence Unit (FIU) tightening its laws was received. The regulator plans to secure its Anti-Money Laundering Laws after the recent hike in attacks. FIU’s AML Inspection Trustee Council discussed an outline for inspection strategies.
Moreover, the recent FIU meeting saw officials coming in from various oversight bodies to discuss institutional inspection. They plan to enforce a consistency to these inspections in order to better combat crypto crimes.
Secondly, the regulator also plans to set up a “Joint Response Team” that would prevent AML crimes happening against the people. Along with this, FIU also plans to focus on institutions that have not been inspected for AML.
How is the South Korean FIU Planning to Tighten Security?
The FIU plans to inspect the work cooperation between consumer protection and AML operations. In this manner it aims to enhance early detection of crypto crimes and faster aids. Moreover, along with focusing on less-inspected institutions, it also plans to investigate AML flagged firms.
Other FIU-associated regulatory bodies plan to assess risk management in firms that are cooperative. With these measures, the FIU plans to enhance security in blockchain and cryptocurrency firms.
Previously, the regulatory body was known for its investigation against the prominent crypto exchange, Upbit. The exchange was targeted for its 600K KYC violations, following which it also faced a disciplinary hearing. On January 16, Upbit received orders to suspend operations due to the aforementioned violations.
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