South Korea Launches Crypto Crime Task Force to Tackle Rising Scams

  • South Korea launches Joint Investigation Centre for Crypto Crimes.
  • The unit team targets high-volatility crypto, illegal trading practices, and tax evasion.
  • The damages from crypto crimes surged 118% in South Korea over the last five years.

South Korea has taken a decisive step to combat the escalating wave of crypto crimes by launching an interagency investigation unit called the Joint Investigation Centre for Crypto Crimes.

According to the country’s Prosecutor’s Office, a dedicated team of approximately 30 experts from judicial, financial, tax, and customs agencies will staff this pioneering unit. The Prosecutors’ Office lamented that cryptocurrencies have become comparable to stocks as investment products. However, market participants have been deprived of legal protection due to incomplete laws and systems. The statement read:

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.

Notably, until the regulatory framework for the crypto market is solidified, the investigation team aims to bridge the gap in investor protection. The investigative would focus on crypto of high volatility, among others. They intend to root out illegal trading practices, tax evasion, unauthorized foreign exchange transfers, concealing criminal profits, and money laundering schemes.

Furthermore, the statement highlighted the damages incurred from crypto-based crimes recently. It revealed crypto scams witnessed a staggering 118% surge over the past five years in South Korea, with 1.02 trillion WON worth approximately $797.81 million lost.

It is worth mentioning that South Korea was once a vibrant crypto market until the implosion of Terraform Labs projects, which had a domino effect on the broader crypto space. Specifically, TerraUSD lost its $1 peg, after which LUNA crashed with more than 100% of its value lost. As Coin Edition reported last month, Terra LUNA founder Do Kwon has been sentenced to jail.

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