South Korea’s Ministry of Justice has announced a new system that will monitor all cryptocurrency transactions. The government is developing new tools to monitor and prevent money laundering and crypto crime.
New move to monitor cryptocurrency transactions from South Korea
According to local sources, South Korea’s Ministry of Justice announced that a “cryptocurrency tracking system” will be implemented in the first half of this year. South Korea plans to set up a surveillance system to streamline the monitoring of money laundering and recovery of proceeds of crime. Crypto-related transactions account for 75% of all illegal currency transactions in the country, according to government data.
The monitoring system is the solution to growing concerns
The cryptocurrency market has hosted a series of high-profile bankruptcies and scams throughout 2022. However, South Korea is taking on one of the world’s leading crypto markets amid rising crypto crimes. A potential bankruptcy like FTX could seriously hurt the country’s investors.
As a result of this, crypto regulations and government surveillance in the country have increased significantly, especially in the wake of the Terra-LUNA crisis. Now, in the first half of this year, South Korea will implement a “crypto monitoring system” to monitor money laundering and proceeds-related transactions.
monitoring system
The new system to monitor crypto transactions will be used by the ministry to check and track transaction records, extract details about transaction relationships, and verify funding sources before and after transfers. They are also working on developing their own crypto tracking and analysis systems in the same time frame. According to the official statement, “In response to the modernization of crime, we will overhaul the scientific investigation infrastructure.”
In addition, the Ministry of Justice plans to activate the ‘National Forensic Informatics Cloud System’ in the first half of this year. In order for other institutions to use the cloud forensic system, the cloud system will be modeled after the forensic system (D-Net).
Governments want to closely monitor cryptocurrency transactions
South Korea has been working on crypto companies and money laundering for a while. Last year, the National Police Service’s Cyber Investigation Bureau signed an agreement with five major Korean crypto exchanges. With this move, it is planned to prevent the illegal use of cryptocurrencies while creating a safe trading environment.
Additionally, the US Department of Justice has set up the “Digital Asset Coordinator” Network to track crypto-related crimes. The “Digital Asset Coordinator” Network was created as part of the White House’s digital asset regulatory framework, announced in September of last year. As Kriptokoin.com, we have included the White House’s statement, which deals with the 2022 crypto bankruptcies and market risks, in this article.
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