Illegal Crypto Foreign Transactions Account for $4.3B in South Korea (2025)
South Korea is grappling with a significant surge in illegal foreign currency transactions involving cryptocurrencies. In 2025, the South Korean government, while regulating the space, saw the inflow of $4.3 billion worth of illegal foreign transactions connected to crypto. This illicit activity raises concerns about money laundering and the use of digital assets for circumventing financial regulations.
The Korea Customs Service has been actively investigating these cases. According to a recent report, illegal foreign exchange transactions using digital currencies were estimated to be around $4 billion last year. The KCS has identified 5.6 trillion Korean won (US$4.3 billion) worth of illegal foreign currency transactions last year involving cryptocurrencies, or trading to take advantage of arbitrage opportunities. In 2025, South Koreans transacted $4.3 billion through illegal crypto exchanges, comprising almost 70% of all illicit money traffic captured by officers. The transactions aimed to purchase digital assets and exploit price differences between domestic and international markets.
These illegal activities are not isolated incidents. The Korea Customs Service in 2025 uncovered a total of 15 cases of illegal foreign exchange transactions purposed for virtual asset speculation. These transactions were worth 5.6 trillion Korean Won and represent a concerted effort to bypass currency controls. The Korea Customs Service in 2025 uncovered a total of 15 cases of illegal foreign exchange transactions purposed for virtual asset speculation. These transactions were conducted through various means to obscure the origin and destination of funds.
In August 2025, Korean customs reported detaining 16 individuals involved in illegal foreign exchange transactions connected to crypto assets worth roughly $2 billion. This highlights the scale of the problem and the government\'s efforts to crack down on these illicit flows.
The South Korean authorities are committed to tightening regulations and enhancing enforcement to combat illegal crypto foreign transactions and protect the integrity of the financial system. Further investigations and stricter oversight are expected to address this growing concern.