South Korea’s FIU flags over 36,000 crypto txns in 2025, more than 2023 and 2024 total
South Korea’s Financial Intelligence Unit has flagged over 36,000 suspicious crypto transactions in 2025, a figure they claim has exceeded the total reported in 2023 and 2024.
According to Yonhap News, citing data from the FIU and the Korea Customs Service (KCS), local virtual asset service providers submitted 36,684 suspicious transaction reports (STRs) between January and August 2025, more than the 35,734 cases reported in the two previous years.
South Korea’s Specific Financial Information Act mandates exchanges and other crypto service providers to notify the FIU of potential money laundering and financial law violations. Suspicious transfers include attempts to convert illicit funds into crypto assets abroad and then cash them out domestically without passing through a foreign exchange bank.
South Korean FIU flags over 36,000 cases of suspicious crypto transactions
FIU authorities said the annual number of flagged cases logged in their records was just 199 reports in 2021, 10,797 in 2022, 16,076 in 2023, and 19,658 in 2024. This year’s count has already nearly doubled the previous record.
Customs officials reported that from 2021 through August 2025, virtual asset crimes referred to prosecutors amounted to 9.56 trillion won, or about $7.1 billion. Of this, 8.62 trillion won, roughly 90%, was linked to so-called “hwanchigi” schemes, where operators bypass banks to move funds overseas using crypto.
In May, customs agents exposed a money changer accused of converting about 57.1 billion won, or $42 million, from a Russian importer into Tether-issued stablecoin USDT. The case involved two Russian nationals accused of conducting over 6,000 illegal transactions between January 2023 and July 2024.
“Recently, as stablecoins have been widely used as a means of payment and settlement in the real economy, the potential for them to be abused for foreign exchange crimes such as currency exchange is increasing,” Representative Jin Sung-joon told reporters on Monday. He is asking the South Korean government to add more laws to stop illegal crypto-based foreign exchange transactions.
Blockchain analytics company Chainalysis reported that crypto platforms suffered losses of about $2.2 billion from theft in 2025, more than the assets stolen last year. In South Korea, police arrested more than 200 individuals in 2024 on allegations of defrauding investors of approximately $240 million.
US-South Korea trade talks stall
The FIU disclosures come as South Korea faces economic struggles amid escalating trade disputes with the United States. As reported by Cryptopolitan on Monday, President Lee Jae-Myung believes Seoul could see a repeat of the hardships of the 1997 Asian financial crisis if it yields to Washington’s demands without “protective safeguards.”
The United States has pressed South Korea to provide $350 billion in cash in exchange for lower trade tariffs.
Commerce Secretary Howard Lutnick supports the US President’s demands, arguing Seoul must accept the terms or face higher tariffs. Adding to the problematic discussions, fresh trade data released Monday showed South Korea’s early September exports tumbling as tariffs take effect.
Adjusted for working days, shipments fell 10.6% in the first 20 days of September compared with a year earlier and a reversal from the 6% gain recorded in August.
The smartest crypto minds already read our newsletter. Want in? Join them.
You May Also Like
Pakistan Considers Digital Rupee to Tap $25B Crypto Growth
Highlights: Pakistan is considering a digital rupee and CBDC to cut remittance costs. The crypto market in Pakistan could unlock $25B in new economic growth. The CBDC pilot phase is in development with World Bank and IMF support. Pakistan is moving forward with plans to integrate blockchain technology into its financial system. The nation is considering introducing a rupee-backed stablecoin and central bank digital currency (CBDC). The objectives of these efforts are to reduce remittance costs, modernize access to finances, and promote economic growth. At the Sustainable Development Policy Institute (SDPI) Conference, leading financial authorities outlined the massive growth potential of crypto. They estimate Pakistanis holding up to $30 billion in crypto holdings. The annual crypto trading might soon reach $300 billion, which is nearly equivalent to the total GDP of the country. Zafar Masud, the president of the Pakistan Banks Association, pointed out the booming global stablecoin market. According to him, the nation is capable of exploiting $20-25 billion in the adoption of digital assets. He confirmed that Pakistan is “actively exploring a rupee-backed stablecoin” to increase access and efficiency. A digital rupee would enhance secure cross-border payment and financial inclusion. More than 100 million Pakistani adults are still unbanked, and the innovation is a pressing case. Pakistan Considers Rupee-Backed Stablecoin Amid $25B Loss Warnings Pakistani regulators are actively exploring the development of a sovereign-backed digital currency amid growing recognition of the transformative potential of cryptocurrencies and bloc…https://t.co/CVr2s8UeoU pic.twitter.com/Fma8WTIGP3 — Crypto Breaking News (@CryptoBreakNews) November 8, 2025 CBDC Prototype Underway The State Bank of Pakistan is proceeding with the development of its digital currency. Faisal Mazhar, the Deputy Director of Payments, revealed that a prototype of CBDC is underway. Additionally, the World Bank and International Monetary Fund are assisting this initiative. He further added that there would be a pilot phase before the full rollout of the currency. The CBDC is expected to make remittances cheaper and financial services more accessible across the country. According to the global specialist Yara Wu, such technology would make remittances faster, secure, and cheaper. Sajid Amin of SDPI emphasized the necessity of having proper regulation. He noted the relevance of cybersecurity, digital literacy, and risk management to safeguard consumers and investors. Fintech Innovation Fuels Growth The fintech industry in Pakistan is also on the rise. ZAR, a start-up that provides dollar-backed stablecoins, recently raised $12.9 million. Top investors, such as Andreessen Horowitz, Coinbase Ventures, and Dragonfly Capital, were the source of funding. ZAR has raised $12.9 million to bring ROCK. SOLID. DOLLARS. to the Global South Led by @a16zcrypto, with @dragonfly_xyz, @vaneck_us, @cbVentures, and Endeavor Catalyst. pic.twitter.com/0DKOlWMwSO — ZAR (@zardotapp) October 28, 2025 ZAR is dedicated to making stablecoins accessible to underserved populations in Pakistan. Their mission focuses on bridging the financial gap in emerging markets. Moreover, the firm is seeking to assist millions of people who have yet to access traditional banking services. In addition, this move matches government-led digital finance initiatives. The increased adoption is a positive sign of increasing cryptocurrency interest in Pakistan. Pakistan moved to the third position globally in the 2025 Global Crypto Adoption Index by Chainalysis. To build further on this momentum, Pakistan established a regulatory framework regarding virtual asset services. Licensing and supervision are being managed by the Pakistan Virtual Asset Regulatory Authority (PVARA). Firms have to comply with stringent compliance criteria under the Virtual Assets Ordinance 2025. These include the anti-money laundering (AML), know-your-customer (KYC), and counter-terrorism financing measures. This goal is to create a regulated, safe digital economy. Furthermore, PVARA also encouraged international crypto exchanges and service providers to apply for licenses in September. eToro Platform Best Crypto Exchange Over 90 top cryptos to trade Regulated by top-tier entities User-friendly trading app 30+ million users 9.9 Visit eToro eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong.
1confirmation founder: A Silicon Valley VC who has been trying to control the crypto industry but has not succeeded.
