South Korea Launches Crypto Investigation Unit to Combat Illicit Activities
South Korea has established a crypto investigation unit to address illegal activities in the digital asset industry. The Joint Investigation Centre for Crypto Crimes is comprised of approximately 30 specialists from various fields, including law, finance, taxation, and customs. The lack of adequate legal protections for virtual assets has exposed market participants to potential abuse, prompting the need for regulatory measures. The team aims to protect investors while awaiting more comprehensive legislation and processes to regulate the crypto market.
Key Points:
– The investigation team will focus on cryptocurrencies with high price volatility, which are prone to illicit trading, tax evasion, unauthorized foreign exchange transfers, criminal profit accumulation, and large-scale money laundering.
– Cryptocurrency-related crimes in South Korea have surged by 118% in the past five years, amounting to 1.02 trillion won ($797.81 million) in 2022.
– The decline in South Korea’s crypto industry was influenced by various factors, including overseas and local events, rising interest rates, and the collapse of stablecoin TerraUSD and its creator, Do Kwon, who now faces fraud charges.
– The government aims to send a clear message to criminals by pooling resources from different organizations to ensure accountability and security.
Hot Take:
The establishment of a crypto investigation unit in South Korea is a significant step towards combating illicit activities in the digital asset industry. By targeting cryptocurrencies with high price volatility and pooling resources from various sectors, the government aims to create a safer and more regulated environment for investors. This initiative reflects the increasing importance of addressing crypto crimes and protecting market participants in an evolving financial landscape.
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