South Korean authorities have formed a dedicated crypto investigation team to tackle illegal operations involving cryptocurrencies. The new team cuts across several financial authorities.
The interagency team was formed in response to growing concerns over potentially illegal activities and Ponzi schemes amid the ongoing crypto frenzy. Koo Yun-Cheol, head of the Office for Government Policy Coordination, said during a vice ministers’ meeting on crypto:
There is a need to pay special attention to the occurrence of illegal activities using virtual assets.
The crackdown is already on and will continue until June. One of the requirements of the initiative is that local financial institutions would tighten the monitoring of cryptocurrency withdrawals. Suspicious activities should then be reported to the state-run Financial Intelligence Unit. Meanwhile, other regulators like the Financial Supervisory Service and the finance ministry are also keeping an eye on cross-border crypto transactions.
South Korea has continued to impose strict crypto regulations. In late March, regulators officially imposed the Act on Reporting and Using Specified Financial Transaction Information. The act demands that local crypto exchanges liaise with local banks to ensure mandatory real-name account trading.
Recall that the country earlier threatened crypto businesses with a 5-year jail term for failing to disclose crypto transactions.