Korean Regulators To Probe Stablecoin, Money Laundering Link

In a bid to stop money launderers, South Korea’s Financial Services Commission (FSC) is planning a probe into the amount of stablecoins being used on crypto exchanges.

According to media reports Monday (Oct. 24), financial authorities in Korea say they consider stablecoins to be extremely susceptible to money laundering. Because of that, the FSC will investigate the number of stablecoins being used on exchanges to determine the threat of money laundering.

With this probe, South Korea joins a number of other countries and regulatory bodies in trying to sever the links between cryptocurrencies and money laundering.

Last month, the U.S. Justice Department named a band of prosecutors to lead its crypto investigations and prosecutions.

The launch of the Digital Asset Coordinator (DAC) Network came in a report that said the Justice Department plans to coordinate crypto investigations by more than a dozen law enforcement agencies from the top with a group of specially-trained prosecutors.

Overseen by the year-old National Cryptocurrency Enforcement Team, the DAC will “ensure that the Department and its prosecutors are best positioned to combat the ever-evolving criminal uses of digital asset technology,” said Assistant Attorney General Kenneth Polite Jr.

Also in September, members of the European Parliament aiming to fight money laundering said they would look into big crypto transactions as well as the metaverse, decentralized finance (DeFi) and NFTs.

The European Parliament is reportedly considering an overhaul of the EU money laundering laws to include DeFi — and the decentralized autonomous organizations governing it — within its scope.