Criminal transactions involving digital currencies totaled 5.6 trillion won ($4.3 billion) in 2022, according to the South Korean Customs Service.
These funds were seized by law enforcement as part of a policy to tighten controls on the crypto market. In 2021, criminal transactions involving digital assets totaled 3.2 trillion ($2.5 billion).
Nearly 70% of criminal capital in South Korea intercepted by law enforcement moved in digital currencies, local media reported.
Last August, Korean customs apprehended 16 people who were part of a criminal ring. They were laundering criminal proceeds through cryptocurrency.
In total, they were able to legalize about $2 billion.
Under current law in the country since 2017, companies sending and receiving funds in cryptocurrencies must obtain a license from supervisory authorities.
The authorities classify the transactions, which are carried out by investors without a license from the Financial Services Commission, as illegal. This is why the scale of such transactions remains high.