South Korea Announces Crackdown On Crypto Crimes With Investigative Unit

South Korea is taking proactive measures to address the surge in crypto-related crimes and fraud cases by considering the elevation of its Joint Virtual Asset Crime Investigation Unit to an official department. The Ministry of Justice and Ministry of the Interior and Security are poised to commence discussions in early May regarding this transition.

Currently operating as a temporary agency under the Seoul Southern District Prosecutor’s Office, the unit faces the possibility of being disbanded. The proposed promotion aims to solidify the unit’s status and enhance its operational effectiveness. This restructuring would facilitate the appointment of new prosecutors and the allocation of dedicated budgetary resources, essential for combating digital asset crimes effectively.

Established in July 2023, the unit comprises approximately 30 experts drawn from seven financial and tax regulatory authorities. Its elevation to an official department signals South Korea’s commitment to combating illicit activities in the crypto sphere and underscores the growing recognition of digital assets as a significant area of law enforcement focus.

Rise in Crypto-Related Criminal Activities Prompts Regulatory Response in South Korea

South Korea is grappling with a notable upsurge in crypto-related criminal activities, prompting swift regulatory action from the government. In 2023 alone, local crypto companies reported a staggering 16,076 suspicious transactions, marking a 49% increase from the previous year. In response to these challenges, South Korea is set to implement its first comprehensive crypto regulation on July 19.

This landmark regulation is designed to address various concerns, including market manipulation and investor protection. Notably, the new regulatory framework imposes stricter criminal penalties for those found guilty of manipulating the crypto market, with certain offenses carrying the possibility of life sentences.

Also Read: Spot Bitcoin ETF Coming to Australia’s Stock Market by End of 2024

Crypto Policies Take Center Stage in South Korea’s Upcoming Parliamentary Election

As South Korea gears up for its upcoming parliamentary election, crypto-related policies have emerged as a pivotal issue shaping political discourse. With competing visions for the regulation of digital assets, major political parties are vying for the support of the electorate. President Yoon Suk Yeol’s People Power Party has pledged to delay the implementation of a digital-asset tax, a move aimed at garnering support from the burgeoning crypto investor community.

In contrast, the opposition Democratic Party has promised to lift restrictions on exchange-traded funds (ETFs), including those linked to US Bitcoin products. These divergent policy proposals reflect contrasting approaches to regulating digital assets and highlight the complex interplay between technological innovation and regulatory frameworks.

Also Read: Crypto Prices Today April 29: Bitcoin At 62K, ETH Dips, XRP & BONK Crash

CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.