South Korea Proposes Bill to Freeze Crypto Accounts Tied to Suspected Crime

A proposed amendment to South Korea's anti-money laundering law aims to give financial authorities swift access to freeze cryptocurrency exchange accounts suspected of being used to transfer illegal assets.

The bill, drafted by 15 lawmakers from the ruling People Power Party, would grant the Financial Intelligence Unit (FIU) the authority to request payment suspensions on bank accounts and crypto accounts linked to illicit activities.

Under the proposal, the FIU could ask financial companies or virtual-asset service providers to suspend payments if there are reasonable grounds to suspect that a bank account or crypto account was used to transfer illegal assets.

The suspension could last up to 30 days and be extended once for another 30 days if needed. Failure to comply would result in an administrative fine of up to 100 million won ($72,000).