South Korea Establishes Permanent Unit for Crypto Crime Investigations
In response to the rising incidence of crypto-related crimes, South Korea is taking a firmer stance on regulating digital assets. The country is contemplating the transformation of its temporary Joint Virtual Asset Crime Investigation Unit into a permanent department. This decision follows a significant uptick in suspicious transactions linked to cryptocurrencies, with a reported 49% increase from the previous year, totaling over 16,000 cases in 2023. The proposed permanent department will have an allocated budget and the authority to appoint additional prosecutors, thereby strengthening its ability to combat virtual asset crimes.
The move aligns with South Korea's broader efforts to regulate the digital asset market. The first comprehensive set of crypto regulations in the country is scheduled to take effect on July 19, 2024. These regulations are designed to impose stricter penalties on those found guilty of market manipulation, with some offenses potentially meriting life sentences. As South Korea navigates the challenges of fostering technological innovation while ensuring a secure and orderly crypto market, the upcoming parliamentary elections will likely shed light on the public's sentiment regarding the regulation of cryptocurrencies.
