Key Takeaways:
- South Korea establishes an interagency investigation unit to combat crypto-currency crimes.
- The Joint Investigation Centre for Crypto Crimes comprises 30 personnel from judicial, financial, tax, and customs agencies.
In response to the increasing incidents of cryptocurrency-related crimes in the country, South Korea has taken decisive action by establishing an “Interagency Task Force” dedicated to addressing these challenges.
The task force is composed of representatives from various government agencies, law enforcement bodies, and financial regulators, all collaborating to tackle the rising issues associated with cryptocurrencies.
The Korea Securities Depository has recently entered into a business agreement with Code, a specialized company in Travel Rules, at a ceremony held in Seoul.
The agreement aims to foster the adoption and utilization of Legal Entity Identifiers (LEI) in the virtual asset market.
Earlier, local news media Yonhap News reported that the Seoul Southern District Prosecutors Office is taking significant steps to combat crypto crimes by establishing a collaborative unit named the “Joint Investigation Centre for Crypto Crimes.
“This dedicated unit consists of 30 investigators drawn from seven government agencies and bodies, including the prosecution, Financial Supervisory Service, National Tax Service, Korea Customs Service, and others.”
The Joint Investigation Centre’s formation reflects the nation’s commitment to combating virtual asset-related crimes effectively.
The collapse of TerraUSD (USTC) and Luna tokens, both created by South Korean national Do Kwon, worsened a $2 trillion crypto-market downturn last year, leading to increased regulatory scrutiny in the country.
Apart from the Kwon incident, South Korea has experienced a rise in crypto-related crimes over the past five years, resulting in significant financial losses amounting to 5.3 trillion won. These crimes encompassed various illicit activities, including ponzi schemes, backdoor listings, and price manipulations.
To address these growing concerns, the newly established Joint Investigation Centre for Crypto Crimes, as reported by Yonhap, will take charge of monitoring cryptocurrency market players involved in issuing or distributing digital assets.
The center’s primary objective is to identify and investigate any abnormal trading patterns or illegal activities related to cryptocurrencies. Additionally, the team will expedite the process of analyzing crypto crime cases, enabling swift action against offenders.
The launch coincides with the passage of South Korea’s first-of-its-kind legislation aimed to protect cryptocurrency investors by the National Assembly.
Individuals who engage in unfair trading practises using virtual assets, the use of hidden information, market price manipulation, and unlawful transactions will face consequences under the new law, including prison sentences and fines.
