Key Points:
The move comes as the country awaits proper legislation to address the growing concerns in the crypto space.
The Korea Financial Intelligence Unit (KoFIU), a specialized agency dedicated to combating money laundering and terrorist financing, recently convened a consultative body meeting to strengthen the compliance capacity of virtual asset service providers, according to an official statement released by the Financial Services Commission.
As reported by Yonhap news agency, this meeting follows closely on the heels of the establishment of an interagency investigation unit, which was launched just a day prior to tackling crypto-related crimes effectively. The interagency unit comprises over 30 investigators drawn from various agencies, including the prosecution, the Financial Supervisory Service, the National Tax Service, and the Korea Customs Service.
The primary mandate of this unit is to investigate and track down instances of abnormal trading among market players issuing or distributing cryptocurrency. Additionally, the team will handle all investigative procedures related to crypto-related criminal cases, ranging from detection and analysis to swift resolution.
The South Korean government’s new legislation aims to curb unfair trading practices within the crypto realm, holding perpetrators accountable with the possibility of prison sentences and fines. Acts of unfair trading that fall under the purview of this law include the use of undisclosed information, market price manipulation, and illegal transactions.
As part of the ongoing efforts to enhance compliance and curb illicit activities, five domestic crypto service providers participated in the meeting, presenting their respective measures to tackle potential crime effectively.
As Coincu reported, to safeguard virtual asset users and prevent money laundering, the Korean Federation of Banks adopted “Virtual Asset Real-Name Account Operating Guidelines.” Virtual asset exchanges are required to keep 3 billion won in reserves to cover user losses. To reinforce security measures, enhanced client identification, transaction monitoring, and reporting of suspicious actions will be made yearly.
With these proactive initiatives by the South Korean authorities, the country seeks to create a robust regulatory framework to govern the virtual asset market, ensuring transparency, fairness, and security for all participants. As the legislation awaits finalization, the collaborative efforts of various agencies signal the nation’s determination to combat the growing challenges posed by illegal activities in the rapidly evolving crypto landscape.
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