South Korea to Build a Crypto Tracking System to Prevent Cybercrime: Report

South Korea has lengthy been a crucial marketplace for crypto exchanges and DeFi platforms.

FTX, as an illustration, reportedly made a fortune off of the so-called Kimchi Premium, the hole in worth between the price of crypto in South Korea and elsewhere, largely fueled by the necessity for USD-backed trades, creating alternatives for arbitrage buying and selling.

Unfavorable Press Attention

Although not unlawful in and of itself, this methodology of gathering income has been usually frowned upon. Furthermore, South Korea has taken discover of the unhealthy publicity drawn by crypto within the wake of the current Bithumb raids. It’s value noting that though Terraform Labs was not headquartered in Korea, the autumn of Terra additionally triggered fairly a rift in native media shops.

It’s unclear whether or not the adverse press generated over the previous 12 months or so had a lot of a say within the Korean Government’s resolution to fund this monitoring system.

Nevertheless, in accordance to a report launched by native publication KHGames and outlined by Wu Blockchain, a crypto reporter predominantly engaged on crypto developments within the APAC area, the Korean authorities has began creating a system to monitor digital asset trades and plans to implement it someday this 12 months.

The South Korean Ministry of Justice will introduce a “cryptocurrency monitoring system” within the first half of this 12 months to strengthen the monitoring of cash laundering and restoration of felony proceeds utilizing cryptocurrencies. https://t.co/2CLkaLUrX6

— Wu Blockchain (@WuBlockchain) January 29, 2023

End-to-End Coverage of Transactions

The Virtual Currency Tracking System will reportedly monitor the transaction historical past of crypto customers and search to verify the supply of the funds utilized in such transactions earlier than they’re remitted to the recipient.

A spokesperson for the Ministry of Justice, the federal government physique reportedly main the event effort, said that the instrument was obligatory given the elevated sophistication of strategies utilized by cybercriminals.

“In response to the sophistication of crime, we are going to enhance the forensic infrastructure. We will construct a felony justice system that meets worldwide requirements.”

The crypto monitoring instrument will perform as a barrier towards cybercrime, growing the quantity of safety crypto buyers profit from in South Korea. Investors already profit from the settlement Korean Police have with 5 native big-league crypto exchanges relating to cooperation on digital asset-related fraud and theft.

Neither the precise capabilities of the upcoming monitoring system introduced nor a precise launch date has been offered but. Nevertheless, additional updates needs to be launched by the Ministry of Justice fairly quickly, bearing in mind the plans to launch the instrument earlier than the 12 months is out.