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South Korea is set to introduce new guidelines in the third quarter of 2025 to help with institutional investment in cryptocurrencies. The initiative is led by the Financial Services Commission (FSC) and the idea is to slowly lift the existing restrictions on institutional crypto investments. This could be quite the shift for South Korea and the country’s approach to digital assets. The guidelines will be rolled out in two phases, with the first one aimed at non-profit organizations and exchanges. The target date is April, and the guidelines will focus on establishing a foundational framework and addressing anti-money laundering (AML) concerns. The second phase is scheduled to come in Q3 and will introduce thorough instructions tailored for public companies and professional investors. This part is key in unlocking the potential of the virtual assets market within the corporate sector. There’s already been talk in previous months on lifting the ban , and with today’s announcement, it seems the country is adamant about doing so. When the decision officially takes place, it could have a big effect on the country and even the crypto industry itself. South Korea is a notable player in the global technology and financial sectors, and its progressive stance on crypto regulation may influence other countries to adopt similar approaches, contributing to the overall growth of the crypto industry. This dates back to 2017, when regulators imposed a ban on Initial Coin Offerings (ICOs) and prohibited institutional investors from directly holding or trading crypto assets. The decision was made in response to concerns about fraud, speculative trading, and money laundering that were abundant in the rapidly growing crypto market. Its restrictions grew over the years, from 2018 when banks were prohibited from providing corporate accounts for crypto exchanges, to 2021 when the government introduced tax regulations for crypto. In addition, that year, new licensing requirements forced all South Korean crypto exchanges to register with the Financial Intelligence Unit (FIU) and obtain Information Security Management System (ISMS) certification. As such, these new guidelines represent an important development in the integration of cryptocurrencies into mainstream finance – one from which South Korea can benefit immensely. Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

Findings from India’s Financial Intelligence Unit (FIU) indicate suspicions that cryptocurrencies are being used for illicit activities, including terrorism financing, cybercrime, narcotics trafficking, and illegal betting. Prepared during the 2023-2024 financial year, the FIU’s report for virtual digital assets (VDAs) and their service providers (such as crypto exchanges) analyzed numerous suspicious transaction reports (STRs) from the sector. These findings have been shared with agencies like the Enforcement Directorate (ED), Central Bureau of Investigation (CBI), and the Income-Tax Department, ultimately leading to enforcement actions in certain cases. The report also mentions shady pump and dump schemes with fake coins, high-volume crypto transactions in illegal forex apps, and attempts to involve individuals suspected of unlawful activities. This news breaks during a time where India is crafting a regulatory framework for cryptocurrencies. While not illegal, income from cryptocurrency transactions has been taxed at a flat rate of 30% since 2022. Therefore, the findings could impact regulations due to the FIU’s report, as suspicions may lead to heightened measures aimed at preventing the misuse of digital assets, not to mention that it may influence public perception and adoption of cryptocurrencies. The RBI (Reserve Bank of India) has also expressed doubts about private cryptocurrencies, viewing them as a big risk to India’s economic and financial stability. India has historically struggled with challenges related to money laundering and terrorist financing. Last year , the Financial Action Task Force (FATF), an international anti-money laundering watchdog, urged the country to speed up prosecutions in financial fraud cases. Despite being compliant on most parameters, India was rated as moderately effective in investigating and prosecuting money laundering, with issues like court backlogs slowing down convictions. Add cryptocurrencies to the mix and it all becomes very complicated, making the challenge of rooting out criminal activities even worse as the pseudonymous nature of digital currencies can hamper the authorities when trying to trace potentially criminal transactions. It’s not clear how India will respond to the findings of the FIU’s report, but all this highlights the need for robust regulatory frameworks that will balance innovation with the prevention of illicit activities in the crypto industry. Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

The post WazirX Hack News: FIU Launches Probe Into Exchange’s Security Failures appeared first on Coinpedia Fintech News After nearly 7 months, WazirX, one of India’s largest cryptocurrency exchanges, is under intense scrutiny as the Financial Intelligence Unit (FIU) has been ordered to investigate the platform for fraud and security failures. This directive, issued by India’s Ministry of Finance on February 14, 2025, comes months after WazirX suffered a massive ₹2000 crore hack, putting over ₹4500 crore in user funds at risk. Breaking NEWS : India’s Finance Ministry Orders FIU Investigation into WazirX for Fraud! pic.twitter.com/ZUIBAUEVII — Pushpendra Singh (@pushpendrakum) March 7, 2025 Government Cracks Down on Crypto Irregularities The investigation follows a formal complaint filed with the Finance Ministry, prompting Shri Kailash Chand Joshi, Under Secretary (Legal), to escalate the matter. Official documents now task the FIU with uncovering the full extent of WazirX’s alleged fraudulent activities. This move signals stricter enforcement in India’s crypto sector as regulators aim to clamp down on financial misconduct and safeguard investor interests. The hack resulted in significant losses for investors, and nearly 43% of users are likely to lose their funds, with investigations revealing complex hacking techniques and possible internal vulnerabilities. WazirX has been cooperating with authorities but has not yet provided a clear resolution for affected users. Money Laundering Allegations and Binance Connection However, authorities have raised serious concerns over WazirX’s compliance failures. Reports suggest the platform may have facilitated money laundering for fintech firms by failing to enforce proper KYC (Know Your Customer) checks and neglecting to maintain bank account records. The Enforcement Directorate (ED) previously criticized WazirX for weak transaction controls, particularly in dealings with Binance. Adding to its troubles, the exchange’s massive security breach in July 2024—linked to North Korea’s Lazarus Group—exposed significant flaws in its operational safeguards. Investigations revealed discrepancies in transaction data and inadequate wallet security, further raising doubts about the platform’s integrity. Will WazirX Executives Face Legal Consequences? With mounting evidence, speculation is growing that WazirX co-founder Nischal Shetty and key associates could face criminal charges. If the FIU’s probe confirms financial misconduct, severe legal repercussions, including potential jail time, could follow. This case is poised to become a landmark moment in India’s crypto regulation. If wrongdoing is proved, it could lead to stricter rules, tighter oversight, and heightened accountability for exchanges operating in the country. The industry is now watching closely, as the FIU’s findings could reshape the regulations scene for digital assets in India.

South Korea’s Financial Intelligence Unit (FIU) is reinforcing its Anti-Money Laundering (AML) laws to address rising financial crimes involving cryptocurrencies. The Financial Services Commission (FSC) held a key meeting to discuss countermeasures against evolving money laundering techniques. Strict AML regulations now operate at the FIU because financial offenses involving cryptocurrency have increased. A meeting of the AML Inspection Trustee Council at the FIU on March 5th 2025 took place to evaluate AML risk components and create updated AML framework rules. Head Park Kwang of FIU conducted meetings with representatives from 11 institutions which included the Financial Supervisory Service and Ministry of the Interior and Safety and other financial officials for the discussions. The council’s main focus was strengthening regulations to curb illicit transactions facilitated by cryptocurrencies. The FIU identified new money laundering methods, including virtual accounts and unauthorized remittance practices, requiring immediate regulatory intervention. Authorities are developing tailored annual inspection plans to mitigate these risks. The AML Inspection Trustee Council concentrated on refining AML oversight mechanisms to prevent fraudulent activities. Officials discussed strategies to enhance compliance and improve real-time detection of suspicious transactions. A priority remains to ensure uniformity in AML inspections across institutions to eliminate regulatory loopholes. Authorities are aligning these measures with international regulatory efforts. The FIU’s latest initiatives mirror global trends where financial regulators are tightening controls on crypto-related transactions. The focus is on improving AML frameworks to address vulnerabilities that cybercriminals exploit. The FIU is forming a ‘People’s Livelihood Crime AML Joint Response Team’ in collaboration with financial agencies. This team will actively detect and address AML weaknesses, working closely with relevant institutions. Strengthening financial security remains a top objective amid the rise in crypto-related crimes. DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

South Korea's Dunamu challenges FIU over restrictions on new user crypto transfers The operator of South Korea's Upbit crypto exchange, Dunamu, filed a lawsuit on Feb. 27 against the Financial Intelligence Unit (FIU) under the Financial Services Commission (FSC), according to the Korean news agency Yonhap. The lawsuit was submitted to the Seoul Administrative Court. It seeks to overturn a three-month suspension imposed on certain Upbit operations and to request a halt to the execution of this suspension. Two days ago, when the partial suspension notice was issued, the FIU also held nine Upbit employees accountable, including the CEO. He received a reprimand and was removed from his role as a compliance officer.