South Korea is combating the increasing incidents of cryptocurrency-related crimes and fraud cases by transitioning its temporary crypto investigative unit into a permanent one, according to a local report. The nation's Justice Ministry and the Ministry of the Interior and Safety are scheduled to commence discussions in early May to upgrade the Joint Virtual Asset Crime Investigation Unit into an official department.
The proposed promotion aims to solidify the unit's status, as it currently operates as a temporary body under the Seoul Southern District Prosecutor's Office, making it susceptible to potential disbandment. Launched in July 2023, the unit comprises approximately 30 experts from seven financial and tax regulatory authorities, making it South Korea's first dedicated investigative body focused on digital asset crimes.
The country has witnessed a significant surge in cryptocurrency-related criminal activities. According to a February report from South Korea's Financial Intelligence Unit, local crypto companies reported 16,076 suspicious transactions in 2023, representing a 49% increase compared to 2022.
Furthermore, South Korea is set to implement its first comprehensive crypto regulation on July 19, aimed at safeguarding investors. The new regulation will impose stricter criminal penalties for market manipulation in the crypto industry, including the possibility of life sentences in certain cases