The South Korean government is set to introduce a cryptocurrency tracking system within the first half of the year, according to the Ministry Of Justice. The monitoring system will be used for crypto transaction observation and analysis, including to identify the sources of illicit funds.
South Korea to Begin Monitoring Crypto Transactions in 1H
The South Korean Ministry Of Justice announced that it would be implementing a cryptocurrency tracking program within the first half of the year.
In its 2023 process report, the Ministry Of Justice stated that the tracking system will be used for the observation and analysis of cryptocurrency transactions, particularly to locate the sources of illegal funds. The local media quoted the ministry as saying:
We will be reviewing forensic infrastructure in the context of modernizing crime.
The Korean authorities have been discussing the adoption of a system that can monitor illicit crypto transactions for many months. In October last year, the country’s Supreme Prosecutor’s Office was in the process of buying a cryptocurrency monitoring device via the Public Procurement Service.
The Ministry Of Justice also announced that it would develop its own cryptocurrency tracking system and evaluation system during the second half of the year.
The Justice Ministry’s announcement followed a statement from Financial Supervisory Service (FSS) Governor Lee Bok-hyun earlier this month, that the regulator intends to create cryptocurrency tracking tools to regularly examine the risks associated with cryptocurrency investments. Additionally, the South Korean National Police Agency signed agreements with five of the country’s largest cryptocurrency exchanges in October to gather data for cryptocurrency-related crime investigations.
In the United States, the Department of Justice established a nationwide initiative, the “Digital Assets Coordinator Network”, in September last year, with more than 150 federal prosecutors to “combat the ever-evolving criminal uses of technology.” The DOJ made a famous statement at that time: “of digital assets.” .
Blockchain analytics firm Chainalysis estimated that illicit crypto transactions worldwide exceeded $14 billion last year.
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