South Korea is taking steps to establish its temporary crypto investigative unit as a permanent one to address the increasing incidents of crimes and fraud cases, according to a local report.

The nation’s Justice Ministry and the Ministry of the Interior and Safety are set to begin discussions in early May about elevating the Joint Virtual Asset Crime Investigation Unit to an official department, Segye Ilbo reported.

The promotion will aim to solidify the unit’s status since it currently operates as a temporary body under the Seoul Southern District Prosecutor’s Office and could be disbanded. This change is expected to boost efficiency through the appointment of new prosecutors and budget allocation, according to Segye.

The unit, consisting of around 30 experts from seven financial and tax regulatory authorities, was launched in July 2023 as South Korea’s inaugural investigative body focused on digital asset crimes.

The country is experiencing a significant rise in crypto-related criminal activities. According to a February report by South Korea’s Financial Intelligence Unit, local crypto companies reported 16,076 suspicious transactions in 2023, marking a 49% increase from 2022.

Additionally, South Korea will implement its first comprehensive crypto regulation aimed at protecting investors on July 19. This new regulation imposes stricter criminal penalties for manipulating the crypto market, including life sentences in certain cases.

Source : The Block / Apr 29, 2024