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Official Unit of Investigation for crypto to be installed  in South Korea amid crypto crime surge

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Official Unit of Investigation for crypto to be installed  in South Korea amid crypto crime surge

  coinpedia.org 2 h

Official Unit of Investigation for crypto to be installed  in South Korea amid crypto crime surge

In response to the levelling up of cryptocurrency-related crimes in South Korea, the country is reportedly getting serious about it and is planning to elevate of the temporary crypto-crime investigative unit to a permanent department aiming to address the growing concerns, according to local publications.

Country witnesses concerning trends in crypto crimes

Last year crypto companies in South Korea reported over 16,000 cases of suspected illegal activities with a 40-fold increase. Crypto security matters have become urgent after reports showed a fast growth of illegal crypto-related activities linked to local crypto companies. What is alarming is that from the 17,764 reported suspicious transactions in the year 2023, it was observed a 49% spike from the previous year.

The FSC noted the significant increase in virtual asset-related crime cases during the year under review, reporting it to be about 90% higher. The amount of havoc wrought by virtual asset-related crimes over the past five years was crystalized at more than 5.3 trillion won.

The above statistics are of great worry to South Korea and therefore it is increasing its efforts to curb crypto-crimes. The South Korean government’s Justice Ministry and the Ministry of the Interior and Safety are expected to begin discussions in early May to establish the Joint Virtual Asset Crime Investigation Unit as an official unit.

This planned upgrading program will improve the unit’s status providing it with a permanent mandate of continuous functioning. Now operating body of the District Prosecutor of Seoul on an emergency basis, the unit might get dissolved. It is expected to become the more efficient one because of the possibility of appointing more prosecutors and through budget allocation.

Also Check Out : North Korea’s Lazarus Group Targets Crypto Firms in New LinkedIn Scam

Launched in July 2023, the Joint Virtual Asset Crime Investigation Bureau, conformed of over 30 professionals. They work for seven financial and tax regulatory entities. It holds the first place in investigating the criminal side of digital assets in South Korea.

More importantly, July 19 marks the effective date of the first public law in South Korea which was intended to be a comprehensive crypto regulation to protect investor’s interests and to eliminate illegal activities in the crypto market.

The new regulation is said to provide harsh punishments to be used to fight back against market manipulation like life sentences in some cases.

As South Korea enhances its legislative system and the authorities’ capacity to fight crypto crime, right off the bat is the message that criminals will not be tolerated and full measures are in place to maintain the safety of the digital asset ecosystem.

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