Taking a stand against the growing threat of crypto crimes, South Korean regulators are taking proactive steps to establish a dedicated investigative unit. This bold move demonstrates their unwavering commitment to safeguarding the nation’s financial security and cracking down on illegal activities in the cryptocurrency world.
The nation’s Justice Ministry and Ministry of Interior and Safety are teaming up to tackle virtual asset crimes with the creation of a brand new department – the Joint Virtual Asset Crime Investigation Unit.
This highly-anticipated move, set to take place in early May, will transform the unit from a temporary entity to an official department, with a dedicated team of prosecutors and a designated budget.
The world of digital assets and financial crimes with an elite team of 30 experts hailing from seven prestigious financial and taxation authorities. Launched in July, this groundbreaking unit is the first of its kind in South Korea, solely dedicated to combatting digital asset-related crimes.
The nation has been plagued by a surge in crypto crimes, as reported by the Financial Intelligence Unit (FIU) in February. A staggering 16,076 suspicious transactions were flagged by the watchdog, marking a 48.8% increase since 2022. The FIU’s findings paint a grim picture of the rising threat of financial crimes in the digital realm.
Unleashing the explosive growth of the FIU was their strategic partnership with local cryptocurrency service providers, compelling them to report any dubious transactions. This bold move resulted in a staggering 90% surge in crypto-related cases being passed on to law enforcement for further scrutiny.
In a daring bust, the Haeundae Police Station in Busan, South Korea has successfully apprehended two cunning criminals who swindled millions in the name of cryptocurrency investments.
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These devious scammers promised a whopping 70% return on a monthly investment of 1 billion won, luring unsuspecting victims into their trap. But justice has been served as the police crack down on this elaborate scheme, exposing the true face of greed and deceit.
Exciting developments are underway in South Korea as the nation gears up to roll out its first-ever crypto regulatory framework on July 19th. The new law promises to crack down on market manipulators and impose harsher penalties, including the possibility of life imprisonment for those found guilty of serious offenses.
This groundbreaking “Virtual Asset User Protection Act” was first approved in July 2023, but with a one-year grace period, the country is now ready to put it into action. To ensure swift justice, the Joint Virtual Asset Crime Investigation Unit has been launched, ready to take down any wrongdoers in the crypto world.