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The South Korean Ministry of Justice disclosed intentions to create a crypto tracking system to combat the flow of dirty money and other related financial transactions and to reclaim cash associated with criminal conduct.
Recently, the country's financial monitoring services governor lee bok-hyun said the government's plan to implement a digital currency monitoring tool to secure data and counter the dangers of the market.
It is believed that 2 million South Koreans, or approximately 4% of the population, presently possess cryptocurrencies. According to government data, Bitcoin and other related currencies are implicated in a third of the illegal foreign exchange operations in the country.
Photo: Sungjin Kim and Getty Pictures.
South Korea It's called Crypto Powerhouse.
Within 12 years of Bitcoin's inception, Asia emerged as a digital currency and a blockchain dynamo, with South Korea serving as a pivot.
Leading telecommunications provider in the country, sk telecom, presents a web-based portfolio, and the biggest fintech company in the country, dunamu, $380 million will be deployed over the next five years to generate 10,000 new job opportunities on the web3.
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
Following the Terra-LUNA crisis, the government has expanded its control and laws around cryptocurrencies as the number of people using them rises.
Khgames, a local media site, said that the virtual currency monitoring system will be used to monitor transaction history, extract data about transactions, and verify the source of cash before and during the transmission.
Essentially, the statement from the department states:
"In response to crime's sophistication, we will enhance forensic infrastructure. We will establish a criminal justice system that is consistent with international standards."
Following the successful launch of the proposed tracking system, the Ministry of Justice declared that it would put in place a second tracking and analysis system by the second half of 2023. The first system is planned to be implemented during the first half of this year.
Next project: National Justice Cloud Computing System.
As much as 30% of the world's cryptocurrency trade is driven by the Korean market. As the government has not yet designated cryptocurrencies as legal currency, it is now permitted to hold, sell and buy cryptocurrencies in the country.
Crypto total market cap at $1 trillion on the daily chart | Chart: TradingView.com
Major entities like Solana are aware of the country's attributes not only as clients, but also as developers within its crypto activity. The Solana Foundation and Solana companies recently pledged to invest $100 million in web3 start-ups in South Korea.
This year's first semester, the ministry of justice also wants to build the “national digital forensic cloud system.” The Cloud Crime Scene System will be designed after the Digital Crime Scene System (D-Net) for use by other agencies.
Prior to this, South Korean authorities had entered into an agreement with five local exchanges to collaborate on criminal investigations, with the ultimate goal of creating a safe business environment for crypto investors.
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