According to domestic reports, South Korea is taking active measures to respond to the surge in cryptocurrency-related crimes, including converting temporary cryptocurrency crime investigation teams into permanent departments. The country has seen a significant increase in reports of suspicious transactions from cryptocurrency companies, prompting the government to step up efforts to root out fraudulent activities.
According to a Segye Ilbo report, the Ministry of Justice and the Ministry of Public Administration and Security plan to begin discussions in early May on a plan to promote the Joint Investigation Team for Virtual Asset Crimes to an official department. The goal is to formalize the status of the special forces unit currently operated under the Seoul Southern District Prosecutors’ Office and strengthen its effectiveness through the appointment of additional prosecutors and budget allocation.
Established in July 2023, the unit consists of approximately 30 experts from seven financial and tax regulators and is the country’s first dedicated investigative agency focused on digital asset crime. According to a February report from the Korea Financial Intelligence Unit (FIU), there has been a significant increase in cryptocurrency-related criminal activity in Korea. Domestic cryptocurrency companies reported 16,076 suspicious transactions in 2023, a 49% jump from the previous year.
Additionally, Korea plans to implement its first comprehensive cryptocurrency regulation on July 19 with the goal of protecting investors. The new rules impose stricter penalties for market manipulation, including the potential for life imprisonment in certain cases. These initiatives highlight Korea’s commitment to curbing illegal activities in the cryptocurrency sector and creating a safer environment for investors and stakeholders.
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