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Crypto News: South Korea to Officially Launch Virtual Asset Crime Unit Amid Rising Cases

Crypto News: South Korea to Officially Launch Virtual Asset Crime Unit Amid Rising Cases

South Korean prosecutors are set to formalize a special unit dedicated to tackling cryptocurrency crimes. Initially established as a task force in mid-2023, the unit’s role has become increasingly important due to the surge in crypto-related criminal activities. The government plans to officially upgrade this task force into a full department within the prosecution service by February or March 2025.

The unit, originally known as the Joint Investigation Unit (JIU) for virtual asset crimes, has made significant strides in the past year. It has indicted 41 individuals, arrested 18, and seized a range of assets, including Bitcoin, altcoins, and luxury items, totaling approximately 141 billion South Korean won ($97.5 million).

As crypto crime cases continue to rise, the government acknowledges the growing need for a more systematic and coordinated approach. The Ministry of Justice plans to amend the Enforcement Decree of the Prosecutor’s Office Act, which will allow the JIU to become an official entity with more resources, including additional prosecutors.

The new department will not only consist of prosecutors but will also include representatives from regulatory bodies such as the Financial Supervisory Service, the Financial Intelligence Unit, and other key government agencies. These partnerships will enhance the department’s ability to handle the complexity of cryptocurrency-related crimes, which often involve price manipulation and fraud.

The JIU has already seized valuable assets, including luxury buildings and sports cars, in its efforts to combat crypto fraud. With its growing workload, South Korea’s government believes that formalizing the unit will improve its ability to respond efficiently to the increasing challenges in the crypto space.

The Ministry of Justice is currently gathering public feedback on the revised proposal, with plans to finalize the unit’s formal launch by early March 2025. This move comes as part of South Korea’s ongoing efforts to regulate and police the fast-evolving cryptocurrency market.

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