The post South Korea sees record surge in suspicious crypto transactions in 2025 appeared on BitcoinEthereumNews.com.

Hwanchigi remittances remain the largest driver of suspicious cases. Stablecoins, especially Tether, are used in cross-border laundering schemes. Lawmakers push for tighter monitoring and global cooperation. South Korea has reported a dramatic rise in suspicious cryptocurrency transactions in 2025, signalling deepening concerns over money laundering and cross-border crime. According to data from the Financial Intelligence Unit (FIU), domestic exchanges filed 36,684 suspicious transaction reports (STRs) between January and August. This already surpasses the combined totals of the previous two years. Authorities say much of the increase stems from illegal foreign remittance activities, known locally as “hwanchigi”, where digital assets are used to bypass capital controls and funnel money abroad. The surge highlights how crypto crime has rapidly evolved into a systemic issue for regulators. Suspicious transactions hit historic highs The growth in flagged transactions has accelerated in recent years. In 2021, only 199 cases were reported. By 2022, this surged to nearly 18,000, followed by 16,076 in 2023. The 2024 total doubled that figure, but the 2025 data for August has already set a new record. The Korea Customs Service (KCS) referred ₩9.56 trillion ($7.1 billion) in crypto-linked crimes to prosecutors between 2021 and August 2025. More than 90% of these cases were tied to hwanchigi-related laundering activities, where crypto is used as an intermediary to disguise and reroute funds. Officials note that exchanges are filing STRs at unprecedented levels, showing both increased surveillance and higher levels of suspicious activity. Stablecoins linked to global transfers Regulators have increasingly flagged stablecoins as a key tool in illicit cross-border transactions. Stablecoins are designed to mirror fiat currencies and are often used for faster settlement. However, their role in foreign exchange crimes has become more visible. In May 2025, customs officials exposed a case involving ₩57.1 billion ($42 million) moved between South Korea…

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Filed under: News - @ September 22, 2025 1:26 pm