The South Korean Ministry of Justice revealed intentions to implement a crypto-tracking system to combat money laundering schemes and reclaim funds linked with criminal activity.
According to local media outlet khgames, the “Virtual Currency Tracking System” will be used to keep track of transaction history, extract data about transactions, and verify the source of funds both before and after the remittance.
The South Korean Ministry of Justice will introduce a “cryptocurrency tracking system” in the first half of this year to strengthen the tracking of money laundering and recovery of criminal proceeds using cryptocurrencies. https://t.co/2CLkaLUrX6
— Wu Blockchain (@WuBlockchain) January 29, 2023
The South Korean government announced plans to construct a tracking and analysis system, which is to be deployed in the first half of 2023. The statement from the ministry is translated as follows:
“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).”
To foster a secure trading environment for cryptocurrency investors, the South Korean police have already reached an agreement with five regional crypto exchanges.
The South Korean Supreme Court found that cryptocurrency exchange Bithumb must compensate investors for a 1.5-hour service disruption on November 12, 2017, and ordered Bithumb to do so.
“The burden or the cost of technological failures should be shouldered by the service operator, not [the] service users who pay commission for the service,” the court stated.
