South Korea is combatting the rise in cryptocurrency scams and fraud by transitioning a temporary investigation team into a permanent unit, according to a local report.
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The Justice Ministry and the Ministry of the Interior and Safety are set to hold their inaugural discussions in early May regarding the elevation of the Joint Virtual Asset Crime Investigation Unit into a permanent bureau.
The initiative aims to enhance its standing, given that the division currently operates on a temporary basis directly under the Seoul Southern District Prosecutors Office, relying on it for sustainability. Established in July of the preceding year, the department comprises approximately 30 members from seven financial and tax regulatory bodies, marking South Korea's inaugural governmental agency dedicated to probing digital asset-related offenses.
The nation has faced mounting challenges from cyber threats, consequently witnessing a surge in cryptocurrency-linked criminal activities. A report published by South Korea's Financial Intelligence Unit in February revealed the findings of their investigation, indicating that Korean cryptocurrency entities reported 16,076 suspicious transactions last year, marking a 49% increase compared to the previous year.
Conversely, South Korea, at the forefront of cryptocurrency regulations, aims to introduce a comprehensive regulatory framework designed to safeguard investors, commencing from July 19. The new legislation entails stricter penalties, including life imprisonment for specific forms of market manipulation within the cryptocurrency industry.