South Korea to Set Up Dedicated Unit to Combat Crypto-Related Crimes

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South Korea is taking steps to make its temporary crypto investigative unit permanent due to the rising number of crypto-related frauds and crimes in the country. According to a report by Segye Ilbo, discussions between the Justice Ministry and the Ministry of the Interior and Safety are set to begin as early as May to solidify the Joint Virtual Asset Crime Investigation Unit’s status. Currently, the unit operates under the Seoul Southern District Prosecutor’s Office and may be dissolved at any time.

As a crypto investor, I’ve noticed with concern the increasing number of cryptocurrency-related frauds and crimes in South Korea. In response to this growing issue, I’m pleased to hear that South Korean authorities are taking decisive action. Based on a report by Segye Ilbo, they are working to transform their temporary crypto investigative unit into a permanent one. This proactive step underscores their commitment to addressing the challenges in our crypto community and ensuring a safe and secure environment for all investors.

Based on the current situation, the report indicates that the Justice Ministry in South Korea intends to initiate talks with the Ministry of the Interior and Safety as soon as May. The primary objective of these discussions will be to formalize the Joint Virtual Asset Crime Investigation Unit, according to Segye Ilbo.

Currently, the department functions as a provisional team within the Seoul Southern District Prosecutor’s Office. Consequently, there’s a chance that it could be disbanded in the future. Nevertheless, ongoing initiatives aim to secure its permanent standing.

Moving forward, South Korea aims to enhance the productivity of its investigative body by securing fresh personnel and reevaluating financial resources for optimal usage.

Last July saw the introduction of a new entity in South Korea, specifically designed to tackle crypto-related investigations. Comprised of approximately 30 professionals hailing from seven distinct financial and tax regulatory bodies, this organization has been tasked primarily with addressing digital asset crimes.

Crypto Crime Surging in South Korea

South Korea’s determination to formalize its crypto investigative body is strongly connected to the current state of affairs in the country. In recent times, illicit activities associated with cryptocurrencies have been on the rise in South Korea, as outlined in a report published by the Financial Intelligence Unit in February.

In the year 2023, local cryptocurrency businesses identified and flagged approximately 16,076 potentially questionable transactions as compared to the previous year’s 11,038, marking a significant leap of nearly 50%.

In reaction, South Korea promptly initiated measures to address the escalating issue. One such measure involves making an investigative unit official.

starting July 19, the nation will enforce its extensive crypto regulations for the first time. Designed to safeguard investors, certain aspects of this legislation impose severe penalties, including potential life sentences, for those engaging in market manipulation within the cryptocurrency sphere.

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2024-04-29 12:00