Breaking: South Korea to Launch Virtual Currency Tracking System in Q1 of 2023

Estimated read time 2 min read
  • The Ministry of Justice in South Korea has announced plans to introduce a crypto-tracking system mid-year.
  • The Korean government is looking for a way to encourage the growth of the crypto industry, which it believes could lead to an economic boom for the country.

South Korean lawmakers are moving to regulate cryptocurrencies, with the goal of protecting investors and preventing money laundering.

The Ministry of Justice has announced plans to implement a cryptocurrency tracking system called the “Virtual Currency Tracking System” in the first half of 2023. The system would be used to track cryptocurrency transactions, extract data about transactions, and verify the source of cash both before and after the remittance.

The South Korean Police are also taking steps to combat money laundering schemes involving cryptocurrencies. They have established five crypto exchanges that will take part in in-depth crypto criminal investigations.

These measures come as part of a broader effort by the South Korean government to regulate the cryptocurrency industry. In January, the Financial Services Commission (FSC) legalized security token offerings (STOs), which are blockchain-based digital forms of traditional securities.

The South Korean government is looking for a way to encourage the growth of the crypto industry, while also protecting investors. It is a difficult balance to strike, but the government is taking steps in the right direction.

The recent raid on the offices of South Korean exchange Bithumb is a sign that the government is serious about enforcing regulations. Bithumb is one of only five Korean crypto exchanges that remain after a 2021 crackdown in which approximately 70 domestic exchanges closed after failing to meet regulatory requirements.

The raid on Bithumb is a warning to other exchanges that they need to comply with the law. It is also a sign that the government is willing to take action against those who break the law.

Crypto regulation is a complex issue, but it is one that the South Korean government is taking seriously. The measures that the government has taken so far are a good start, and it will be interesting to see how they evolve in the future.

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