The Ministry of Justice in South Korea has announced plans to implement a new crypto-tracking system. This helps combat money laundering and recover funds linked to criminal activities. The system, called the “Virtual Currency Tracking System”, will be used to monitor transaction history, extract information related to transactions and check the source of funds before and after remittance. The system is set to be deployed in the first half of 2023, but the South Korean ministry also plans to develop an independent tracking and analysis system in the second half of the year.
This move by the Ministry of Justice comes as a response to the growing sophistication of crime in the country. The ministry’s statement said, “In response to the sophistication of crime, we will improve the forensic infrastructure (infrastructure). We will build a criminal justice system that meets international standards (global standards).”
The South Korean police have already established an agreement with five local crypto exchanges to cooperate in criminal investigations and create a safe trading environment for crypto investors. This move by the Ministry of Justice is seen as a continuation of the government’s efforts to protect crypto investors and create a safer environment for crypto trading.
In addition, the South Korean Supreme Court recently ruled that crypto exchange Bithumb must pay damages to investors over a 1.5-hour service outage that occurred on November 12, 2017. The final ruling ordered damages ranging from as little as $6 to around $6,400 to be paid to the 132 investors involved.
Overall, the introduction of the Virtual Currency Tracking System is a significant step forward in South Korea’s efforts to combat money laundering and protect crypto investors. The system is expected to be fully operational by 2023 and will help to create a safer and more transparent environment for crypto trading in the country.
