The South Korean Ministry of Justice announced plans to introduce a crypto-monitoring system to counter money laundering efforts and recover funds linked to criminal activities.
The “Virtual Currency Tracking System” will be used to monitor transaction history, extract information related to transactions, and verify the origin of funds before and after shipment, according to to local news outlet khgames.
The South Korean Ministry of Justice will introduce a “cryptocurrency tracking system” in the first half of this year to strengthen the tracking of money laundering and recovery of criminal proceeds using cryptocurrency. https://t.co/2CLkaLUrX6
— Wu Blockchain (@WuBlockchain) January 29, 2023
While the system is scheduled to roll out in the first half of 2023, the South Korean ministry shared plans to develop an independent monitoring and analysis system in the second half of the year. A rough translation of the ministry’s statement reads:
“In response to the sophistication of crime, we will improve the forensic infrastructure (infrastructure). We will build a criminal justice system that meets international standards (global standards).”
The South Korean police previously established an agreement with five local cryptocurrency exchanges to cooperate in criminal investigations and ultimately create a safe trading environment for cryptocurrency investors.
Related: South Korean Prosecutors Request Arrest Warrant For Bithumb Owner: Report
The South Korean Supreme Court ruled that cryptocurrency exchange Bithumb must pay damages to investors for a 1.5-hour service outage on November 12, 2017.
The final ruling by the supreme court ordered the payment of damages ranging from $6 to around $6,400 to the 132 investors involved.
“The burden or cost of technological failures must be borne by the service operator, not [the] service users who pay commission for the service,” the court said.
