South Korea is preparing to intensify its fight against crypto-related crime by converting its special task force into an investigative unit.
A local report states that the South Korean Ministry of Justice is planning to amend the Enforcement Decree of the Prosecutor’s Office Act in order to make the Joint Investigation Department of Virtual Asset a permanent organization with greater resources.
The unit’s authority and resources will expand beyond the initial July 2023 formation date if approved.
In the second half 2024, authorities began discussing the institutionalization of the taskforce as a permanent entity in recognition of the growing complexity and volume related to virtual assets.
The Seoul Southern District Prosecutors' Office task force is expected to launch as early as February or by March 2025 at the latest, as per the report.
By making this unit permanent, the South Korean government hopes to improve its ability to effectively investigate and prosecute crimes involving virtual assets.
Joint Investigation Team for Virtual Asset Crimes, a joint effort of several financial and regulatory institutions, was first established. These included the Financial Supervisory Service (FSS), Financial Intelligence Unit(FIU), Korea Exchanges, National Tax Service, Korea Customs Service and Korea Deposit Insurance Corporation.
In the last year, the temporary Task Force has resulted in the arrest of several dozens of people and the confiscation of large amounts of illicit property.
The official data for August 2024 indicates that the taskforce had arrested and indicted 18 individuals, while seizing and preserving assets worth $97.5 million (141 trillion won), including Bitcoin and altcoins.
After a review of the proposed legislation, public comments will be accepted until February 5, 2020.
In addition to increasing the number prosecutors, the plan includes expanding resources at the Seoul Southern District Prosecutors’ Office in order to meet the expanding needs of the unit.
South Korea is one of the more heavily regulated markets for crypto in the world. Authorities have been tightening their anti-money laundering policies, and are enforcing compliance on cryptocurrency exchanges.
The South Korean Financial Services Commission, or FSC for short, passed their first law ever in July 2024. This was a response to major scandals within the industry such as Terra-Luna’s collapse.
Local media reported that authorities have recently suspended Upbit, which is the largest crypto-exchange in the country, due to failures with user identification verification.
Stacy Elliott is the editor.