South Korea may quickly increase its crackdown on crypto-related crimes by creating a continuous investigative unit through its specific task force.
According to a local media report, the South Korean Ministry of Justice intends to amend the Prosecutor’s Office Act’s Enforcement Decree to allow the Joint Investigation Department ( JIU) for Virtual Asset to become a permanent entity with more resources.
If approved, the system will continue to strengthen its efforts to combat crypto-related crimes and expand its resources and authority beyond its original development in July 2023.
Authorities started discussions about setting up the task power as a permanent unit in response to the growing breadth and volume of crimes involving digital assets in the second quarter of 2024.
According to the report, the Seoul Southern District Prosecutors ‘ Office task force is scheduled to start in February or by March 2025 at the latest.
Making the product lasting will help the South Korean government make it more effective to investigate and prosecute digital asset offences.
The Joint Investigation Team for Virtual Asset Crimes was originally created as a joint venture between several important fiscal and regulatory bodies, including the Korea Exchange, the National Tax Service, the Korea Customs Service, and the Korea Deposit Insurance Corporation.
The temporary task force’s recent accomplishments have included the arrest of numerous people and the sequester of considerable unlawful property.
Official data from August 2024 shows that the task force had indicted 41 individuals and arrested 18 suspects, while also seizing or preserving$ 97.5 million ( 141 billion won ) worth of assets, including Bitcoin, altcoins, and luxury properties.
The Ministry of Justice is currently working on legislative changes, and feedback from the government may be gathered until February 5, 2025.
The Seoul Southern District Prosecutors ‘ Office will have more prosecutors under its purview, as well as expanding its roster, to give the unit the necessary resources to handle its expanding responsibilities.
South Korea has long been one of the world’s most tightly regulated crypto markets, with authorities consistently enforcing stricter anti-money laundering ( AML) laws and enforcing stricter compliance standards on crypto exchanges.
The South Korean Financial Services Commission ( FSC ) passed its first-ever law in July 2024 to stop unfair trading practices that have been sparked by major industry scandals like the Terra-Luna collapse.
In a recent case of its regulatory work, regulators suspended Upbit, the country’s largest crypto exchange, citing problems in person identity verification procedures, according to local media reports.
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