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- A new crypto tracking system will be introduced to the South Korean crypto industry to curb illegal crypto trading and money laundering.
- In South Korea, 75% of illegal forex transactions are encrypted.
According to South Korea’s Ministry of Justice, a “virtual asset tracking system” will be launched in the first half of this year. South Korea wants to use cryptocurrencies to facilitate money laundering detection and fund recovery.
In recent years, South Korea has emerged as one of the top markets for cryptocurrencies. Crimes involving virtual currencies are also on the rise. Due to increased usage and increased cryptocrime, regulations and government controls over the domestic industry are now tightening. Especially after the Terra-LUNA crisis.
According to government statistics, cryptocurrencies play a role in 75% of illicit foreign exchange transactions in the country.
To track transactions related to money laundering and criminal proceeds, the Ministry of Justice will deploy a “crypto-tracking system.” This is expected to take place in the first half of this year.
The ministry uses a tracking system to investigate and track transaction records. We also collect information about how the transaction is related and verify the origin of the funds before and after the transfer. They are also working on a strategy to simultaneously create a South Korean crypto tracking and analysis system.
In the first half of this year, the Ministry of Justice also plans to set up a nationwide digital forensic cloud system. To facilitate use by other agencies, the Forensic Cloud system is based on the Digital Forensic System (D-Net).
Last year, five major South Korean cryptocurrency exchanges signed a deal with the National Police Agency’s Cyber Investigation Bureau. This provides a safe trading environment and prevents fraudulent use of virtual assets.
The “Digital Asset Coordinator” network was also developed by the U.S. Department of Justice to monitor crimes related to cryptocurrencies. The White House announced a framework for regulating digital assets last September. This included the creation of a network of “digital asset coordinators”.
In South Korea, 75% of illegal forex transactions are encrypted
bloomberg report In the middle of last year, illegal foreign exchange operations in South Korea were dominated by transactions involving cryptocurrencies.
In 2022, South Korea’s prosecutor’s office investigated four cryptocurrency-related cases involving fraudulent transactions worth more than $1.1 billion.
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Cryptocurrencies are involved in about 75% of transactions that violate the laws governing foreign exchange in South Korea. Illegal foreign exchange transactions have doubled from about $800 million in 2021 to billions of dollars in 2022. There will be a 61% increase in illegal cryptocurrency-related transactions in 2022 compared to 2021.
Staggering data and its impact on the South Korean economy are the reasons behind their recent move. The Ministry of Justice has pledged to do everything possible to curb illegal crypto trading this year.
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