Currently, this function is being carried out by a department at the Seoul Southern District Prosecutor’s Office, which officials believe lacks the necessary resources to effectively combat cryptocurrency fraud. The new department will be allocated additional funding from the budget and will comprise of prosecutors with expertise in virtual asset investigations.
The South Korean authorities are alarmed by the rise in crimes associated with cryptocurrencies. Official statistics show that more than 16,000 suspicious transactions involving virtual assets were reported in 2023, marking a 49% increase compared to the previous year.
Starting from July 19, 2024, South Korea will implement new regulations on cryptocurrencies. These regulations will impose stricter penalties, including life imprisonment, for those involved in manipulating the cryptocurrency market.
Ahead of the upcoming parliamentary elections, both major political parties in South Korea have assured local investors that they will enact laws to promote the growth of the crypto industry.