The Financial authorities of South Korea have launched an interagency investigation team to crack down on cryptocurrency-related crimes.
The joint virtual asset crime investigation unit will start operations at the Seoul Southern District Prosecutors Office.
The team includes 30 investigators from seven government agencies, including the prosecution, the Financial Supervisory Service, the National Tax Service, and the Korea Customs Service.
“Virtual assets are investment products that already compare to stocks, but market participants are practically left out from legal protection amid incomplete laws and systems,” it said.
To track down any abnormal trading or crypto-related illegal activities, the Joint Investigation Centre for Crypto Crimes will supervise market players issuing or distributing cryptocurrencies, according to a Yonhap report.
Apart from the Kwon fallout, damages from cryptocurrency-related crimes surged 118% over the last five years in the country to 1.02 trillion won ($797.81 million) in 2022. The crimes included price manipulations, illegal foreign exchange transactions, and Ponzi schemes.
It said investigations would especially target cryptocurrencies for illegal trading practices, tax evasions, unauthorized foreign exchange transfers, covering criminal profits, and money laundering.
According to a statement, suspected crime-related transactions jumped 1263%, from 66 in 2021 to 900 in 2022, across local cryptocurrency exchanges.
“Cases that are already being investigated will be completed by the current department. New cases related to crimes involving cryptocurrencies will be assigned to the newly launched joint investigative team,” an investigator from the Office, noted at the time.
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