South Korea Weighs Regulations To Combat Cryptocurrency Money Laundering
South Korea is contemplating regulatory measures specifically targeting cryptocurrency mixing platforms, aiming to thwart illegal money laundering activities by criminal organizations.
The Financial Intelligence Unit (FIU) is reportedly in discussions about implementing a legal framework to address the use of these privacy-enhancing services. Authorities are exploring the possibility of allowing virtual asset service providers (VASPs) to reject transactions associated with addresses that have utilized mixing platforms.
The move aligns with the U.S. Treasury Department’s focus on enhancing transparency around such services, with recent sanctions on platforms like Sinbad and Tornado Cash. While early discussions are underway in Korea, a conclusive decision is not imminent due to the complex and international nature of the issue, emphasizing the need for global cooperation in addressing cryptocurrency mixing challenges.
Clever Robot News Desk 18th January 2024
