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South Korea’s Ministry of Justice forms task force to damper crypto crimes

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South Korea’s Ministry of Justice forms task force to damper crypto crimes

  crypto.news 25 m

South Korea’s Ministry of Justice forms task force to damper crypto crimes

South Korea’s Ministry of Justice has launched a special task force to combat the increasing prevalence of crypto crimes, signaling a major crackdown on fraud and market manipulation.

South Korea is intensifying efforts to clamp down on market manipulation and fraud in the cryptocurrency industry by establishing a special task force in collaboration with local regulatory bodies. According to a regulatory document, the task force under the Ministry of Justice targets plans to target cases of price manipulation, unregistered crypto exchanges, and deposit fraud, which have increasingly affected citizens.

The document reveals that illicit activity involving crypto in South Korea has already surpassed $1.6 billion this year. The task force aims to dismantle schemes promising high returns on crypto investments. In addition, the Ministry is preparing to enforce the Virtual Asset User Protection Act, set to be implemented in July, to ensure the protection of assets held by crypto users.

You might also like: Bitcoin ETFs under review by South Korean regulators, FSS governor shares insights

The latest initiative underscores South Korea’s commitment to fostering a transparent environment for crypto trading, even though the country lags behind other regions in crypto adoption.

As crypto.news reported earlier, South Korean financial regulators face mounting pressure to approve exchange-traded funds (ETFs) for cryptocurrencies, following the U.S. Securities and Exchange Commission’s recent approval of spot Ethereum ETFs. Jung Eui-jung, head of the Korean Stockholders’ Alliance, has emphasized the importance of following the U.S. example by endorsing Bitcoin and Ethereum ETFs, reflecting broader frustration with Seoul’s cautious approach to cryptocurrency regulation.

Read more: Korean tax service mulling new platform to monitor all crypto transactions

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