South Korea to Start Tracking Crypto Transactions in Bid to Crack Down on Money Laundering
TL;DR The South Korean Ministry of Justice plans to start tracking crypto transactions in order to crack down on money laundering. They will initially use third-party software, but plan to develop their own system that should be ready by the second half of the year. This comes as the police signed an agreement with domestic exchanges last October, and lawmakers are currently considering 17 separate proposals on crypto regulation.
South Korea’s Ministry of Justice plans to start tracking crypto transactions as it looks to crack down on money laundering, it said in a task report published Thursday.
The ministry will initially use third-party software to monitor transaction history, extract information on transactions and check the source of funds. It plans to develop its own system, which should be ready in the second half of the year.
South Korean police signed an agreement last October with domestic crypto exchanges Upbit, Bithumb, Coinone, Corbit, and Gopax, pledging cooperation in criminal investigations involving crypto. Bithumb is currently under investigation for tax evasion and price manipulation.
South Korean lawmakers are currently considering 17 separate proposals on regulating crypto, from which they plan to formulate the Digital Asset Basic Act.