- The unit’s standing and operational efficacy will be strengthened by the proposal.
- The unit which was formed in July 2023 is composed of around 30 specialists.
In response to the recent uptick in incidents of fraud and crimes using cryptocurrency, South Korea is contemplating establishing its Joint Virtual Asset Crime Investigation Unit, an official agency. Early in May, talks on this change are expected to begin between key Ministries of South korea.
The unit is now functioning as a temporary agency under the Seoul Southern District Prosecutor’s Office, although its disbandment is a real possibility. The unit’s standing and operational efficacy will be strengthened by the proposed elevation. The successful combatting of digital asset crimes requires the appointment of more prosecutors and the provision of specialized financial resources, both of which would be made possible by this reform.
Countering Surge in Crypto Crimes
Moreover, the unit, which was formed in July 2023, is composed of around 30 specialists from seven different tax and financial regulatory bodies. Its promotion to the rank of official department demonstrates South Korea’s will to fight crypto-related crime and highlights the increasing awareness of digital assets as a key area of investigation for law enforcement.
A dramatic increase in criminal activity using crypto has prompted the government of South Korea to move quickly to impose regulations. Furthermore, there was a 49% rise from the previous year to 16,076 suspicious transactions recorded by local crypto businesses in 2023. In light of these difficulties, on July 19th, South Korea will enact its first comprehensive crypto law.
Also, market manipulation and investor protection are two of the many issues that this historic rule aims to resolve. Particularly, the new legal framework makes it much harder to get out of jail for manipulating the cryptocurrency market; in fact, certain crimes might get life in prison sentences.
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