South Korea will soon ramp up its crackdown on crypto-related crimes by turning its specialized task force into a permanent investigative unit.
The South Korean Ministry of Justice plans to amend the Enforcement Decree of the Prosecutor’s Office Act, allowing the Joint Investigation Department (JIU) for Virtual Asset to become a permanent entity with more resources, as per a local media report.
If approved, the unit will be building on its work against crypto-related crimes, expanding its authority and resources beyond its initial formation in July 2023.
Authorities began discussions in the second half of 2024 on institutionalizing the task force as a permanent unit recognizing the increasing complexity and volume of virtual asset-related crimes.
The Seoul Southern District Prosecutors' Office task force is expected to launch as early as February or by March 2025 at the latest, as per the report.
The South Korean government seeks to enhance its capacity to investigate and prosecute virtual asset crimes more efficiently by making the unit permanent.
The Joint Investigation Team for Virtual Asset Crimes was initially established as a collaborative effort between several key financial and regulatory agencies, including the Financial Supervisory Service, the Financial Intelligence Unit (FIU), the Korea Exchange, the National Tax Service, the Korea Customs Service, and the Korea Deposit Insurance Corporation.
Over the past year, the temporary task force has led to the indictment of dozens of individuals and the seizure of significant illicit assets.
Official data from August 2024 shows that the task force had indicted 41 individuals and arrested 18 suspects, while also seizing or preserving $97.5 million (141 billion won) worth of assets, including Bitcoin, altcoins, and luxury properties.
The Ministry of Justice is now moving forward with legislative revisions, and public feedback on the proposal will be collected until February 5, 2025.
The plan also includes expanding the number of prosecutors at the Seoul Southern District Prosecutors’ Office to provide the necessary resources to handle the unit’s expanding responsibilities.
South Korea has long been one of the most heavily regulated crypto markets in the world, with authorities consistently tightening anti-money laundering (AML) policies and enforcing stricter compliance measures on crypto exchanges.
In July 2024, the South Korean Financial Services Commission (FSC) enacted its first-ever law to crack down on unfair trading practices spurred by major industry scandals such as the Terra-Luna collapse.
In a recent example of its regulatory efforts, authorities suspended Upbit, the country’s largest crypto exchange, citing failures in user identity verification processes, according to local media reports.
Edited by Stacy Elliott.
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