Coin Remittances Between Korean and Cambodian Exchanges Surge 1,400-Fold

It has been revealed that the inflow and outflow of US dollar stablecoins between domestic virtual asset exchanges and local exchanges in Cambodia surged dramatically last year.

Yonhap News Agency

According to data submitted by the Financial Supervisory Service to Assemblyman Lee Yangsoo of the National Assembly's Political Affairs Committee on the 27th, the total volume of coin transfers between Korea's five major virtual asset exchanges (Upbit, Bithumb, Coinone, Korbit, and Gopax) and Cambodia's Huiyuan Guarantee reached 12,864,500,000 won last year. This figure represents an increase of nearly 1,400 times compared to 9,220,000 won in 2023.

In 2023, the inflow (Cambodia to Korea) amounted to 8,950,000 won, while the outflow (Korea to Cambodia) was 280,000 won. Last year, the inflow jumped to 10,494,570,000 won, and the outflow to 2,311,880,000 won.

By exchange, Bithumb accounted for the majority, with coin inflows and outflows with Huiyuan Guarantee soaring from 9,220,000 won in 2023 to 12,426,460,000 won last year. During the same period, Upbit, which previously had no such transactions, saw its volume rise sharply to 366,910,000 won. Coinone's volume increased from 2,500 won to 1,200,000 won. At Korbit, coins worth 11,870,000 won were transferred last year, while Gopax recorded no such transactions at all.

The Huiyuan Group has been designated by the US and UK governments as a transnational criminal organization and sanctioned for allegedly laundering virtual assets acquired through fraud or theft. Huiyuan Guarantee is a virtual asset service platform affiliated with this group and is suspected to be a high-risk route for illicit fund transfers. Large-scale coin transfers between domestic exchanges and Huiyuan Guarantee continued into this year.

From January of this year to the 20th of this month, the total volume of coin transfers at the five major exchanges was 3,149,250,000 won. Although this is a decrease from last year, it remains significant compared to 2023.

By exchange, Bithumb accounted for the largest share at 2,182,180,000 won, followed by Upbit (523,510,000 won), Korbit (443,280,000 won), and Coinone (280,000 won).

However, it was reported that Upbit has blocked all transactions with Huiyuan Guarantee since March this year, and Bithumb, Coinone, and Korbit have done so since May.

In Bithumb's case, there was also a record this year of 680,000 won being transferred in from Byex, an exchange affiliated with the Prince Group, which has been identified as being behind criminal operations in Cambodia. Byex has also been sanctioned internationally as a money laundering channel for the Prince Group. On the 22nd, Bithumb belatedly blocked all types of coin transfers with Byex.

Meanwhile, remittances between domestic and Cambodian exchanges were mostly conducted using the dollar stablecoin Tether (USDT).

Of the 12,864,500,000 won in total transfers last year, 12,856,900,000 won (99.9%) was in Tether.

Tether is effectively a currency pegged 1:1 to the US dollar. Its low volatility and high liquidity appear to have made it the preferred means for cross-border remittances between the two countries.

Assemblyman Lee Yangsoo stated, "Financial authorities must take seriously and thoroughly investigate the surge in stablecoin transfers between domestic and Cambodian exchanges," adding, "Above all, it is essential to accurately determine the reality of illegal money laundering or remittances by Cambodian criminal organizations and establish countermeasures."

This content was produced with the assistance of AI translation services.