By
Mayowa Adebajo
May 7th, 2024
The unit, which was launched last July, is South Korea’s inaugural crypto-focused investigative body.
South Korea is, as a matter of urgency, taking steps to convert its temporary crypto investigative unit to a permanent one. According to a report by local news outlet Segye Ilbo, the efforts are in line with the rising cases of crypto-related frauds and crimes in the country.
In view of this, the report claims that South Korea’s Justice Ministry is set to begin discussions with the Ministry of the Interior and Safety as early as May. The discussions will focus on how to officialize the Joint Virtual Asset Crime Investigation Unit, Segye Ilbo added.
Presently, the department operates as a temporary unit under the Seoul Southern District Prosecutor’s Office. This means that there is a possibility that the unit may be dissolved at any time. However, with the ongoing efforts, the unit’s status is poised to be solidified.
Furthermore, South Korea will be hoping that the change in status will bring more efficiency to the investigative unit. To achieve this, the country will seek to appoint new prosecutors and review budget allocations for maximum function.
The unit, which was launched last July, is South Korea’s inaugural crypto-focused investigative body. It consists of about 30 experts from seven financial and tax regulatory authorities, and its main job description has been about digital asset crimes.
Crypto Crime Surging in South Korea
South Korea’s resolve to make its crypto investigative unit official is undoubtedly related to the present situation in the country. Criminal activities that are linked to cryptocurrencies have recently been flourishing in the country. This was detailed in a February report by South Korea’s Financial Intelligence Unit.
The report noted that local crypto companies reported 16,076 suspicious transactions in 2023, a whopping 49% increase from 2022.
In response, South Korea has immediately begun taking steps to curb the growing menace. One of those steps is the investigative unit it is trying to make official.
Additionally, the country will implement its first comprehensive crypto regulation on July 19. Although the new rule is aimed at protecting investors, some of its propositions include stricter criminal penalties such as life sentences for manipulating the crypto market.