South Korea is finally set to launch a cryptocurrency tracking system codenamed “Virtual Currency Tracking System” in a bid to ensure that there is close monitoring of digital assets transaction flow and history.
The South Korean Ministry of Justice will introduce a "cryptocurrency tracking system" in the first half of this year to strengthen the tracking of money laundering and recovery of criminal proceeds using cryptocurrencies. https://t.co/2CLkaLUrX6
— Wu Blockchain (@WuBlockchain) January 29, 2023
The policy will be rolled out in the first half of 2023 and it is targeted at checkmating money laundering as well as criminal proceeds related to cryptocurrencies.
The disclosure by the Ministry of Justice partly reads that:
“In response to the sophistication of crime, we will overhaul the scientific investigation infrastructure in response to the modernization of crime. We will build a criminal justice system that meets international standards”
However, the virtual currency tracking system will be designed in such a way that it could be used to extract valuable information related to transactions as well as the source of funds before and after the remittance.
It is noteworthy that the South Korean police had established a partnership with five local cryptocurrency exchanges to cooperate in criminal investigations to get rid of criminal elements and curb money laundering.
More than at any other time, South Korean authorities are exploring means of regulating digital assets to prevent the proliferation of crimes.
South Korean Authorities Go Tougher
Following the erstwhile claim by the South Korean authorities that crimes in the field of cryptocurrency had hit $2.3 billion, it is working assiduously to curb the further proliferation of criminal activities via digital assets.
Recall that the South Korean Supreme Court once mandated the local crypto exchange Bithumb to pay damages to investors due to a 1.5-hour service outage on Nov. 12.
In the same vein, the Ministry of Foreign Affairs in South Korea had shown interest in bringing Do Kwon to justice with the threat that his passport will be revoked if he fails to honour the invitation earlier presented to him.
As a result, the Financial Services Commission (FSC) urged domestic companies in South Korea to be cautious in delving into the cryptocurrency market because of the inherent danger and emerging regulations.