South Korea Reports 36.6K Suspicious Crypto Deals in 2025 Surpassing 35.7K in 2023 and 2024 Combined

Highlights:

• South Korea reports a surge in domestic crypto users and suspicious crypto transactions in 2025.
• The Asian nation’s virtual asset providers filed 36.6k suspicious deals, exceeding the combined 35.7K reported in the past two years.
• South Korea has also identified a growing trend involving the misuse of stablecoins.

South Korea recently surpassed 10 million domestic crypto users. However, this milestone comes with a rapid rise in the number of suspicious transactions tied to cryptocurrencies. Yonhap News, a South Korean news agency, reported these disturbing findings on September 22.

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According to the publication, data from the Korea Financial Intelligence Unit (FIU) showed that crypto exchanges have reported 36,684 suspicious transactions between January and August of this year. This figure already exceeds the combined 35,734 reports filed in 2023 and 2024.

South Korea is seeing a record surge in suspicious crypto transactions as the number of investors surpasses 10 million. In the first eight months of 2025, domestic exchanges filed 36,684 suspicious transaction reports (STRs) — more than the combined total of 2022 and 2023.

From… pic.twitter.com/yzDj5pKsxk

— CoinPhoton (@coinphoton) September 22, 2025

Over the years, the number of reported suspicious transactions has recorded rapid growth. In 2021, South Korean authorities reported 199 cases. The figure spiked significantly to about 17,977 in 2022, dropped to 16,076 in 2023, and rose again to 19,658 in 2024. By law, virtual asset operators in South Korea are expected to file suspicious transaction reports (STRs) when they suspect fraudulent activities. In addition, they must notify the FIU about such operations.

Beyond the rising suspicious transactions, the Korea Customs Service reported that between January 2021 and August 2025, the total value of crypto-related crimes forwarded to prosecutors reached KRW 9.56 trillion (approximately $7 billion).

Stablecoins Misuse Noted in the New Report

South Korean authorities have also identified a rising trend in stablecoin usage for fraudulent transactions. In May, the nation’s regulatory agency cracked down on a money changer who illegally converted KRW 57.1 billion (approximately $41 million) received from a Russian trader into Tether (USDT), bypassing conventional banking protocols.

Commenting on stablecoins’ utility, Rep. Jin Seong-jun of the Democratic Party of Korea stated:

“Recently, stablecoins have been widely used as a means of payment in the real economy, and the possibility of being abused for foreign exchange crimes, such as exchange, is increasing.”

 Overall, crypto is rapidly going mainstream, implying that more South Koreans will continue to adopt it. In response, regulators are tightening rules, which will make digital assets safe for citizens.

According to Yonhap News, South Korean virtual asset service providers filed 36,684 suspicious transaction reports (STRs) from January to August 2025 — surpassing the combined total of the previous two years (35,734). The Korea Customs Service reports that from 2021 to August…

— Wu Blockchain (@WuBlockchain) September 22, 2025

South Korea Reports Increasing Suspicious Transactions Despite Strong Regulatory Efforts

On September 11, Crypto2Community reported that South Korea will be lifting a seven-year restriction enabling digital asset companies to secure access to financing, tax incentives, and venture capital certification.

In related news, South Korea’s Financial Services Commission (FSC) updated its crypto lending rules, noting that interest rates for such activities are now capped at 20% every year. This will reduce the higher borrowing interest rate for retail borrowers while prohibiting leveraged crypto loans. Under the updated rules, borrowers will no longer receive digital assets worth more than their collateral, replacing previous regulations that allowed borrowing up to four times the collateral valuation.

Meanwhile, earlier this month, South Korea’s Ministry of Economy and Finance mandated the reporting of crypto transaction information. This rule targeted offshore crypto users using South Korean platforms and Korean citizens patronizing foreign exchanges. The compulsory reporting implies that Korean tax authorities will no longer scrutinise holdings of citizens with at least 500 million won worth of digital assets. The scrutiny has now been extended to every transaction regardless of the value.

A South Korean Ministry of Economy and Finance official stated:

“The intention is to prepare detailed regulations for the implementation of the virtual asset information exchange agreement.”

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