Cryptocurrency Transfers Between Korea and Cambodia Surge, Raising Money Laundering Concerns
PHNOM PENH/SEOUL - Cryptocurrency transfers between South Korean exchanges and Cambodian entities skyrocketed in 2024, prompting calls for increased regulatory scrutiny amid fears of illicit financial flows. A recent investigation reveals a dramatic increase in transactions, particularly involving the stablecoin Tether (USDT), raising concerns about potential money laundering and illegal remittances.
The surge comes as Cambodian authorities crack down on online scam operations, some allegedly linked to international criminal networks. In September, a raid on a compound outside Phnom Penh led to the arrest of 48 individuals, including 33 Korean nationals, suspected of involvement in online scams. This incident underscores a growing pattern of criminal activity utilizing cryptocurrency for cross-border transactions.
Between January and October 20, 2025, transactions totaled 3.1 billion won (approximately $2.3 million USD), a critically important decrease from 2024’s 12.8 billion won but still substantially higher than the volume recorded in 2023. The vast majority - 99.9 percent – of the 2024 transfers were conducted using USDT, favored for its stability and liquidity.
Bithumb led the volume of transfers with 2.18 billion won, followed by Upbit (523 million won), Korbit (443 million won), and Coinone (280,000 won).Upbit suspended transfers with Huione Guarantee in March, with Bithumb, Coinone, and Korbit following suit in May.
Further investigation revealed Bithumb received 680,000 won from Byex, an exchange affiliated with Cambodia’s Prince Group, which has faced international sanctions related to alleged money laundering. Bithumb afterward blocked all transactions with Byex on October 22.
“The financial regulators must closely examine the sharp increase in stablecoin transfers between domestic and Cambodian exchanges and identify whether criminal groups are using them for money laundering or illegal remittances,” stated Rep. Lee, urging financial authorities to prioritize the issue.
The use of cryptocurrency facilitates rapid and frequently enough untraceable cross-border movement of funds, making it an attractive tool for illicit activities. Stablecoins, pegged to the value of traditional currencies like the U.S. dollar, offer a degree of price stability that other cryptocurrencies lack, further enhancing their appeal for illicit transactions.
