South Korea's Financial Supervisory Service, Customs Service, and credit card companies have joined forces to crack down on cryptocurrency exchange and illegal overseas cash withdrawals.

According to Mars Finance, citing New Daily, the Financial Supervisory Service (FSS), the Korea Customs Service, the Credit Finance Association, and nine credit card companies in South Korea signed a "Public-Private Partnership Agreement to Block Transnational Criminal Funds" on the same day. This plan aims to cut off the funding chain for telephone fraud and virtual asset crimes at its source by correlating and analyzing overseas credit card usage details and immigration records. Previously, due to information gaps between institutions, the Korea Customs Service, while possessing immigration data, could not monitor abnormal overseas spending in real time, while credit card companies, although possessing payment data, did not have information on cardholders' customs clearance activities. Under the new mechanism, the Korea Customs Service will provide credit card companies with information on high-risk transaction trends, while the FSS will formulate guidelines authorizing credit card companies to take effective measures such as directly interrupting transactions when anomalies are detected. Lee Chan-jin, Director of the Financial Supervisory Service, stated that this move signifies that South Korea has established a normalized monitoring system to prevent the outflow of criminal proceeds overseas at its source. The system will focus on precisely targeting currency exchange activities involving the use of overseas credit cards to withdraw cash from overseas ATMs and laundering money through cryptocurrencies.