In a bid to combat crypto-related crimes and protect investors, an interagency investigation team was unveiled today, bringing together 30 investigators from seven government agencies and bodies. Headquartered at the Seoul Southern District Prosecutors Office, the joint virtual asset crime investigation unit will be spearheaded by agencies such as the prosecution, Financial Supervisory Service, National Tax Service, and Korea Customs Service.
The primary objective of this team is to probe market players involved in issuing or distributing cryptocurrencies, with a focus on tracking down abnormal trading patterns and investigating related offenses. Operating on a fast-track approach, they will handle all investigative procedures pertaining to crypto-related criminal cases, from detection to analysis.
The establishment of this investigation unit comes on the heels of South Korea’s National Assembly passing groundbreaking legislation aimed at safeguarding crypto investors. The law, set to take effect in July next year, will impose harsh penalties, including imprisonment and fines, on individuals engaged in unfair trading practices, such as market price manipulation, illegal transactions, and misuse of undisclosed information.
Crypto has gained immense popularity in South Korea, with approximately 6.27 million citizens actively participating in the domestic crypto market, which boasts a total market value of 19 trillion won (US$14.8 billion) as of end-2022. However, the absence of proper regulations has resulted in a surge of crypto-related crimes, including backdoor listings, pyramid schemes, and price manipulation, posing a significant social problem.
Over the past five years, these crypto crimes have caused substantial financial damage, amounting to 5.3 trillion won. With the launch of this joint investigative team, authorities are optimistic about curbing illicit activities and restoring trust in the thriving crypto landscape.
