South Korean authorities are ramping up a sweeping enforcement campaign against so-called "Tether laundromats" – unregistered physical storefronts that convert illicit proceeds into USDT and shuttle them across borders. The National Police Agency, backed by a special budget of nearly 100 million won, is building dedicated crypto-investigation units and coordinating closely with the Financial Intelligence Unit to trace complex blockchain transactions.
Law enforcement describes a typical operation: a voice phishing ring defrauds victims of Korean won, then funnels the cash to an unlicensed shop in Seoul. There, the won is exchanged for USDT – often on the Tron network – before being instantly transferred to offshore wallets. The laundered funds may later be cashed out at exchanges in jurisdictions with weaker oversight. Officials say the same infrastructure is also fueling drug trafficking and other serious crimes, making the clean-up a matter of national public safety.
Simultaneously, the National Tax Service is constructing a 2.99‑billion‑won AI‑powered analysis system designed to detect tax evasion, irregular gifting, and offshore transfers involving virtual assets. The system is being built ahead of a 2027 mandate that will require all virtual asset service providers to report personal transaction data, giving tax authorities an unprecedented flow of information.
Police leadership stressed that no unregistered exchange is beyond reach, and that officers will carry out regular raids based on intelligence from the Financial Intelligence Unit. The twin moves – aggressive policing of stablecoin‑based laundering and advanced AI tax surveillance – mark a sharp escalation in South Korea’s effort to preserve a transparent, legitimate crypto economy while choking off the financial plumbing used by international criminal networks.
