According to local reports, South Korea is taking steps to permanently establish a temporary virtual currency investigation unit to combat the rise in crime and fraud cases.
The country's Ministry of Justice and Ministry of Home Affairs and Security are scheduled to begin talks in early May about elevating the Joint Virtual Asset Crime Investigation Unit to an official department. Segye Daily News report.
The promotion is aimed at solidifying the unit's status, as it currently operates as a temporary agency under the jurisdiction of the Seoul Southern District Prosecutors' Office and may be disbanded. According to Segye, the changes are expected to improve efficiency through the appointment of new prosecutors and budget allocation.
The division is comprised of approximately 30 experts from seven financial and tax regulatory authorities and was launched in July 2023 as South Korea's first investigative agency focused on digital asset crimes.
The country has seen a significant increase in cryptocurrency-related criminal activities. According to a February report from South Korea's Financial Intelligence Service, domestic cryptocurrency companies reported 16,076 suspicious transactions in 2023, an increase of 49% from 2022.
Furthermore, South Korea is scheduled to implement the first comprehensive cryptocurrency regulations aimed at protecting investors on July 19th. The new regulation imposes harsher criminal penalties for manipulating virtual currency markets, including life imprisonment in certain cases.
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