South Korean FIU head calls for global crypto rules to block regulatory arbitrage

Lee Hyung-joo, head of the Financial Intelligence Unit (FIU) under South Korea's Financial Services Commission, has called for the timely establishment of a consistent and effective global regulatory framework for virtual assets. Speaking at a plenary meeting of the Financial Action Task Force (FATF) at the OECD headquarters, Lee warned that differing approaches to licensing, supervision, and handling of offshore virtual asset service providers (VASPs) across jurisdictions create regulatory arbitrage. He argued that this arbitrage weakens the effectiveness of anti-money laundering and counter-terrorism financing measures, Newsis reported.