South Korean authorities have flagged a record number of 36,684 suspicious crypto transactions between January and August 2025, exceeding the combined totals of the past two years. The majority involved illegal foreign exchange remittances, totaling $7.1 billion, with $6.4 billion linked to hwanchigi schemes involving Tether stablecoin.

A global policy concern arises as stablecoins and digital currencies offer faster payments but also create new channels for illicit flows. The European Union’s MiCA regulation addresses these risks by requiring licensing for issuers and capping stablecoin transfers. Other proposals include limiting digital euro holdings and setting individual caps on digital pounds.

Authorities urge stronger enforcement against criminal funds and disguised remittances, highlighting the need for systematic countermeasures against new foreign exchange crimes. The dilemma faced by South Korea reflects broader global challenges in regulating stablecoins and digital currencies to prevent illicit cross-border transactions.

Read more at Cointelegraph: South Korea Flags Record Suspicious Crypto Transactions in 2025