South Korea Plans the Release of a Cryptocurrency Tracking System

The South Korean Ministry of Justice is mulling plans to launch a cryptocurrency tracking system that will be charged with monitoring transaction history, source of funds before and after remittance as well as other transactional details. The “Virtual Currency Tracking System” as the Ministry plans to call it, is aimed at curbing money laundering as well as assisting in the recovery of funds linked to criminal activities.

According to the local media site Khgames, the crypto tracker is expected in the first half of the year. Then by the second half of the year, an independent tracking and analysis system will also be developed to work alongside the Virtual Currency Tracking System. 

The South Korean government has recognized sophistication in the strategies employed by bad actors to carry out their illicit operations. 

Hence, the decision to come up with forensics infrastructures that are able to effectively combat these criminal upgrades. Apart from forensic education and knowledge, the appropriate agencies will be equipped with scientific investigative methods to track crypto criminals.

“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,” based on a paraphrased translation from Khgames.

South Korean Authorities Combat Crypto Theft 

Five local cryptocurrency exchanges were contacted by the South Korean police to form a collaboration that would aid criminal investigations and the protection of digital asset investors. As far back as 2017, Bithumb was made to pay damages between $6 to around $6,400 to 132 investors who were affected by 1.5 hours of a service outage.

At a certain time, seven local crypto exchange platforms were raided by South Korean prosecutors for their suspected involvement in the collapse of Terraform Labs. Upbit, Coinone, and Bithumb were among the raided exchanges.

A month later, South Korea’s financial sector regulator, the Financial Services Commission (FSC) flagged up to sixteen cryptocurrency exchanges for violation of local laws. Each of them was given a one-month extension to get the necessary license required to offer their services and if not, they would be blocked. Markedly, the Asian country is leaving no stone unturned in its fight against financial criminal activities.