South Korea is intensifying the fight against cryptocurrency crime by transforming the crypto investigation task force into a permanent investigation unit. If the plan is approved, this group will gain additional authority and resources to handle complex cases in the digital asset field.

Transforming the Investigation Team into an Official Unit

The Ministry of Justice of South Korea has proposed amending the Enforcement Decree of the Prosecutor's Law to officially establish the General Investigation Team for Virtual Asset Crimes as a fixed investigation unit.

Initially, this force was established in July 2023 with the mission of combating crimes related to crypto. However, due to the rapidly increasing number of cases, the South Korean government recognized the need to maintain and expand the investigation team to enhance effectiveness. If the proposal is approved, this unit is expected to launch as early as February 2025 or as late as March 2025.

Impressive Results After One Year of Operation

Over the past year, the temporary investigation team has achieved several important accomplishments:

  • 41 individuals have been prosecuted, of which 18 have been arrested.

  • Seized and preserved assets worth 97.5 million USD (equivalent to 141 billion won), including Bitcoin, altcoins, and luxury real estate.

This is the result of coordination among several financial and legal agencies such as the Financial Supervisory Service (FSS), the Financial Intelligence Unit (FIU), the National Tax Agency, Korean Customs, and many other organizations.

South Korea Tightens Management of the Crypto Market

South Korea is one of the countries with the strictest crypto regulations in the world. The government has continuously strengthened anti-money laundering (AML) measures and closely monitored exchanges.

  • In July 2024, the Financial Services Commission of Korea passed the first law aimed at cracking down on fraudulent activities in the crypto market.

  • Upbit, the largest exchange in South Korea, has been suspended due to violations of user identity verification regulations.

South Korea's New Step in the Crypto War

With the officialization of the crypto investigation force, South Korea is demonstrating strong determination to protect investors and maintain order in the digital asset market. The government is also seeking public opinions on this plan until February 5, 2025, before implementation.

This change could significantly impact investors and exchanges in South Korea, as regulations become increasingly stringent.