Last week, the agency revealed a $290 billion gap between reported trade values and bank records. As a result, KCS announced year-round intensive inspections to tackle illegal money flows.

Cosmetic Surgery Used to Mask Transfers

From September 2021 to June 2025, the network moved crypto assets from abroad into South Korean digital wallets. Then, it converted the funds into local currency.

To disguise the transfers, suspects labeled them as cosmetic surgery or education expenses. Consequently, authorities had difficulty detecting the flow at first.

Key Details of the Operation

• Route Tracked: Crypto assets were bought in multiple countries and transferred into South Korean accounts.

• Illegal Scheme: Investigators believe the network exploited foreign exchange fluctuations to move capital overseas.

• Market Context: South Korea’s crypto market reached $64.6 billion in June 2025. Daily trading averaged $4.3 billion, explaining why stricter oversight is expected.

Eyes on New Regulations

The South Korean Supreme Court ruled that Bitcoin can be seized as an asset. This strengthened the legal basis for prosecuting crypto-based money laundering.

Moreover, a 2025 inspection found that 97% of examined companies were linked to illicit transactions. KCS officials announced intensified inspections targeting underground banking operations that threaten foreign exchange stability. As a result, those relying on crypto anonymity face increasing scrutiny.

Crypto Market Under Increased Oversight

Following the network’s collapse, the market is closely watching KCS’s regulatory measures. South Korea remains a global crypto leader, but rising transaction volumes have increased the need for tighter regulation.

Supreme Court rulings empowering authorities to seize crypto assets have further strengthened prosecutorial control. Therefore, KCS has made it clear that it will take a zero-tolerance approach to illegal underground banking. Investors now monitor how these inspections will affect local liquidity and pricing.

Also, you can freely share your thoughts and comments about the topic in the comment section. Additionally, please follow us on our Telegram, YouTube and Twitter channels for the latest news and updates.

The post $102 Million Crypto Network Dismantled in South Korea appeared first on Coin Engineer.

Under the new guidelines expected to be released in January or February, publicly listed companies will be able to invest up to 5% of their equity in digital assets. However, a notable restriction applies: investments will be limited to the top 20 cryptocurrencies by market capitalization. In other words, companies cannot invest randomly in every project. Additionally, transactions must be conducted only on the five largest regulated exchanges in the country. At this point, it’s clear that the government wants to keep liquidity in “safe harbors.”

Giants’ Return and Liquidity Impact

The most striking part of the news is that approximately 3,500 institutions will gain this right. Considering companies like internet giant Naver, which have billions of dollars in equity, the liquidity entering the market could reach trillions of won. Naver’s recent acquisition of Upbit operator Dunamu also indicates that preparations for this move began long ago. Analysts interpret this as a critical step to prevent domestic liquidity from flowing to global exchanges.

CBDC and the 2030 Vision: Treasury Goes Digital

FSC’s move aligns perfectly with South Korea’s 2026 Economic Growth Strategy. The government has set an ambitious goal: by 2030, 25% of the national treasury is planned to be managed through a Central Bank Digital Currency (CBDC). Attention is now on how this massive digitization process will affect public spending. Pilot implementations using “deposit tokens” in areas such as electric vehicle charging incentives suggest the plan is already in motion.

Sector Expectations and Strategic Moves

South Korea giants entering this new arena could reshape global crypto dynamics. Companies will no longer need to establish overseas subsidiaries to invest in digital assets. This development is strategically significant for technological sovereignty. Essentially, by 2030, South Korea is positioning digital assets not only as an investment vehicle but as a core national financial infrastructure, in line with its CBDC vision.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post South Korea Giants Enter Crypto After 9-Year Ban Ends appeared first on Coin Engineer.