South Korea proposes bill to freeze crypto accounts suspected of illicit transfers

South Korea’s ruling Democratic Party has proposed an amendment to the Act on Reporting and Use of Certain Financial Transaction Information that would give financial authorities the power to request payment suspensions for cryptocurrency exchange accounts suspected of being used to transfer illicit assets, Digital Asset reported. The bill would newly define an "account" as a unique identification number assigned by a virtual asset service provider to a user for transaction services, expanding the scope of the law. It also includes a provision allowing the Financial Intelligence Unit under South Korea’s Financial Services Commission to request payment suspensions from financial institutions and virtual asset service providers if it determines there are grounds to suspect that bank accounts and digital asset accounts were used to transfer illicit assets.