South Korea Plans to Establish Permanent Crypto Crime Investigation Unit
South Korea is enhancing its approach to combat virtual asset crimes by upgrading its task force into a permanent investigation unit. This decision arises from increased incidents of crypto fraud, money laundering, and other illegal activities.
Transition to Permanent Unit
- The Joint Investigation Unit (JIU) for Virtual Asset Crimes was established in mid-2023 as a temporary collaboration among various financial agencies.
- The task force has indicted 41 individuals, arrested 18 suspects, and seized assets worth approximately 141 billion South Korean won ($97.5 million).
- The Ministry of Justice plans to formalize this unit as a division within the prosecution service by February or March 2025.
- Public input on the revised enforcement ordinance is expected by February 5, with a goal for official launch by the end of March.
Increased Regulatory Measures
- South Korea's government is tightening regulations on cryptocurrency exchanges and implementing stricter anti-money laundering policies.
- Recently, Upbit, the largest crypto exchange in the country, faced suspension for inadequate user identity verification.
- Authorities identified between 500,000 and 700,000 cases of improper KYC verification during Upbit's license renewal review.
- In November 2024, law enforcement arrested 215 individuals involved in defrauding investors out of 320 billion won ($228.4 million) through fraudulent schemes.