The proposed South Korean cryptocurrency currency tracking system’ will help the Ministry of Justice to check transaction details, extract related information between transactions, and check the source of funds before and after the remittance.
The South Korean Ministry of Justice has announced plans to unveil a cryptocurrency tracking system to help fight increased cases of blockchain-related crimes. According to a report by a local media outlet khgames, the South Korean government is on the precipice of launching a cryptocurrency tracking system in the first half of the year. Later, the South Korean government will build a criminal justice system that meets international standards to prosecute related cyber criminals.
Cryptocurrency Tracking System
The South Korean government is neighboring one of the most notorious hacking groups from North Korea including Lazarus who stole $100 million from Harmony One. As such, South Korea under the leadership of President Yoon Suk-year has been keen to counter cyber-related crimes. Moreover, money stolen through hacking is laundered through sophisticated payments that include crypto mixers like tornado cash.
The South Korean Ministry of Justice will introduce a "cryptocurrency tracking system" in the first half of this year to strengthen the tracking of money laundering and recovery of criminal proceeds using cryptocurrencies. https://t.co/2CLkaLUrX6
— Wu Blockchain (@WuBlockchain) January 29, 2023
Reportedly, the proposed South Korean ‘virtual currency tracking system’ will help the Ministry of Justice to check transaction details, extract related information between transactions, and check the source of funds before and after the remittance. The South Korean Ministry of Justice announced that it would build a cloud system modeled after the prosecution’s digital forensic system (D-Net) so that other agencies can utilize scientific investigation and forensic know-how.
South Korea Fights Cryptocurrency Crimes
The South Korean police department has inked several contracts with different local cryptocurrency exchanges to combat blockchain crimes. The country’s Cyber Investigation Bureau of the National Police Agency announced that it would prevent the illegal use of crypto and create a safe trading environment through business agreements with the five major Korean exchanges. The country’s police department has significantly increased blockchain security experts to help strengthen its investigations.
Furthermore, cybercriminals use sophisticated methods to drain and launder stolen digital assets.
With an increased global crypto watch, hackers have devised more methods to infiltrate target systems. For instance, the United States government recently noted that North Korean hackers are tapping the Web3 job recruitment sector. As such, the hackers get direct access to their target DeFi protocol and easily deploy malicious software at will.
As such, the South Korean government may be compelled to widen its net of investigation as preventing the attack is better than countering them. Moreover, digital asset recovery is a cumbersome process that may take years to happen and is never guaranteed.
Earlier this month, a group of 132 crypto investors won a case after a South Korean court ruled that Bithumb is liable to pay about $200k in damages following a 1.5-hour service outage on November 12, 2017.