South Korean Ministry of Justice Introducing Cryptocurrency Tracking System

South Korean Ministry

Cryptocurrencies become an easy bait for illicit actors to carry on their acts including frauds and money laundering. Financial regulators try to keep watch on such activities and ensure that companies oblige anti-money laundering laws, etc. The South Korean ministry recently reported bringing a system to keep watch on cryptocurrency activities. 

Local media outlet reported that South Korea’s Ministry of Justice announced the introduction of the “Virtual Currency Tracking System.” The system will be keeping a watch on the history, information and source of transactions made using cryptocurrencies both prior to and after remittance. 

This way the ministry will ensure to deal with money laundering activities and also regain the lost funds in criminal activities. 

The South Korean government announced plans to construct a standalone tracking and analysis system in the second half of the year, even though the system is scheduled to be deployed in the first half of 2023. The statement from the ministry is roughly translated as follows: To address the sophistication of crime, we will enhance the forensic infrastructure (infrastructure). We’ll create a criminal justice system that satisfies global and international norms.

With the goal of fostering a secure trading environment for cryptocurrency investors, the South Korean police already reached an agreement with five regional crypto exchanges.

Due to a 1.5-hour service disruption on November 12, 2017, the South Korean Supreme Court ordered cryptocurrency exchange Bithumb to compensate investors.

According to the supreme court’s ultimate decision, the 132 investors implicated must pay damages that range from $6 to about $6,400.

The court ruled that “the service operator shall bear the burden or the cost of technological breakdowns, not the service customers who pay commission for the service.”

As mentioned earlier, cryptocurrencies being in their nascent stage are vulnerable to get exploited. This makes financial authorities across the world keen towards regulating the space, ensuring the security and safeguard to the investors willing to enter the market.