South Korea Proposes System To Freeze Funds On Binance, Top Crypto Exchanges

South Korea’s National Police Agency plans to enable a system with real-time wallet address monitoring and freeze funds functions. The police agency to hold a meeting with Binance and South Korea’s top 5 crypto exchange to discuss these plans. South Korean authorities actively monitor crypto exchanges and firms as the country is the second-largest crypto market.

South Korea Seeks to Enable Real-Time Monitoring System on Binance

The National Police Agency will hold a virtual asset exchange working meeting with Binance and the top 5 crypto exchanges in South Korea (Upbit, Bithumb, Coinone, Korbit, and Gopax) on May 30, reported local news media. The agency seeks to enable a criminal investigation system for real-time monitoring of wallet addresses and request fund freezing on Binance.

The move comes as Binance acquired a majority stake in Gopax to re-enter the South Korean crypto market earlier this year. The world’s largest crypto exchange Binance has its own team that monitors and reports bad actors to law enforcement. In fact, Binance provided training to government agencies to combat crypto crimes and make the exchange well-established in compliance with regulators.

In October, National Police Agency entered into business agreements with the top 5 crypto exchanges to enable a virtual asset exchange confirmation system. When the police search for the wallet address under investigation, it informs the exchange that the police managing it among the five major exchanges.

As per reports, 2086 investigators are using the system as of May 2023. The agency seeks to expand the system to other crypto exchanges, including all 36 domestic exchanges.

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South Korea Strengthens Crypto Oversight

Recently, South Korea passed the Kim Nam-guk Prevention Law to make government officials disclose their crypto holdings. The agencies are also using blockchain analytics tools to prevent crypto money laundering and crimes.

The Financial Supervisory Service to increase the manpower of the three investigation departments from the current 70 to 95, and establish a special investigation team, information collection task force, and digital investigation response team.

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Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.

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