South Korea seizes $3.2 M in crypto from unregistered exchange operators

Authorities dismantled the six-year operation that apparently dealt with over 943.4 billion won.

South Korean law enforcement has actually taken $3.2 million worth of cryptocurrency from operators of unregistered crypto exchanges accused of laundering funds through offshore platforms. Per local media, the suspects presumably utilized a foreign payment entrance service to help with illegal foreign exchange transactions. The group ran unregistered crypto exchanges that provided overseas remittance services. Five more suspects connected to the plan are currently under investigation.

This crackdown unfolds as South Korea steps up its overhaul of the crypto exchange landscape, with regulators digging into the operations of regional platforms. Earlier this month, regulators opened a formal investigation into trading fee structures at significant platforms including Upbit, Bithumb, and Coinone. Exchanges discovered to be in violation now face criminal charges and the risk of ISP-level access restrictions. President Lee Jae-myung has placed crypto reform high on his policy agenda, promising tighter oversight, lower charges, and higher investor protections. One of his administration’s very first major steps was the introduction of the Digital Asset Basic Act– an all-encompassing proposal that lays out licensing rules for on-chain-backed stablecoins, compulsory reporting for digital possession activity, and a merged framework to govern virtual asset service providers. The roadmap likewise charts a path towards legalising cryptocurrency exchange-traded funds by late 2025, with the FSC laying the groundwork through brand-new structures on fund structuring, investor, custody, and pricing guardrails.