South Korea to Launch Crypto Tracking System in First Half of 2023
- According to official statistics, 75% of all illicit FX transactions include some kind of crypto.
- In recent years, South Korea has emerged as a global leader in the crypto industry.
The Justice Ministry of South Korea has announced that a “virtual asset tracking system” would be implemented in the country during the first half of 2032. As a means to combat money laundering and retrieve stolen funds, South Korea is looking to cryptocurrencies. According to official statistics, 75% of all illicit FX transactions include some kind of cryptocurrency.
In recent years, South Korea has emerged as a global leader in the cryptocurrency industry, and with this growth has come to an increase in the number of crimes using cryptocurrencies. Due to escalating crypto crimes alongside adoption, the country’s government has enhanced control and restrictions, notably in the wake of the Terra-LUNA incident.
Crypto Monitoring and Analysis System
The Justice Ministry plans to implement a “crypto tracking system” in the first half of 2023 to monitor financial dealings with illicit funds.
The system will be used to verify the origin of funds before and after transfers, examine and monitor transaction records, and extract data on the link between transactions. A separate initiative to create their own crypto monitoring and analysis system throughout this time frame is also underway.
The Justice Ministry is also working on launching a “National Digital Forensic Cloud System” sometime this year. To allow for its usage by other organizations, the forensic cloud system will be based on the digital forensic system (D-Net).
In December of last year, the Cyber Investigation Bureau of the National Police Agency reached an agreement with the five largest cryptocurrency exchanges in South Korea. This will provide a secure trading environment and prevent the misuse of virtual assets.