FIU Pushes Chainalysis Tool to Strengthen On-Chain Tracking of Crypto Crime Funds
Summary
- South Korea’s Financial Intelligence Unit said it will build a system capable of tracking criminal proceeds as they are converted into virtual assets and transferred overseas.
- The FIU is pursuing the adoption of blockchain analytics firm Chainalysis’s on-chain data solution and reported to the National Assembly a plan to allocate 1.93 billion won, or about $1.39 million, for the project.
- The FIU said the number of reviews and analyses of suspicious transactions related to money laundering rose to 44,680 last year from 26,692 in 2023.
Forecast Trend Report by Period
South Korea’s Financial Intelligence Unit is moving to build a system that can track criminal proceeds, including voice-phishing money, after they are converted into virtual assets and transferred to overseas exchanges or personal wallets.
Seoul Shinmun reported on September 21 that the FIU, which operates under the Financial Services Commission, is pursuing the adoption of an on-chain data solution from blockchain analytics firm Chainalysis. To support the project, the Financial Services Commission reported to the National Assembly a plan to allocate 1.93 billion won, or about $1.39 million, in related budget spending.
On-chain data refers to transaction records and asset transfer information recorded on a blockchain. While the transaction history itself is public, it displays complex wallet addresses instead of users’ real names, limiting the ability to identify the actual owner of the funds and trace their movement.
The system the FIU is pursuing is designed to link and analyze fund transfers between domestic and overseas virtual-asset exchanges and electronic wallets, with a focus on identifying transaction flows that may be tied to crime.
For example, authorities would be able to trace the movement of funds on the blockchain even if proceeds from voice phishing are converted into virtual assets, sent from a domestic exchange to an overseas exchange, and then transferred again to a personal wallet.
The number of suspicious transactions reviewed and analyzed by the FIU for possible money laundering has also been rising. The total increased to 33,834 in 2024 from 26,692 in 2023, and climbed to 44,680 last year.
