To curb the rise in cryptocurrency-related crimes, South Korea’s Ministry of Justice has established a dedicated task force.
This new initiative, in collaboration with local regulatory agencies, aims to address the growing issues of market manipulation and fraud in the cryptocurrency sector.
The task force, detailed in a recent regulatory document, is set to focus on several key areas.
These include investigating cases of price manipulation, shutting down unregistered cryptocurrency exchanges, and tackling deposit fraud schemes that have been increasingly impacting South Korean citizens.
The document reveals that illegal activities involving cryptocurrencies have already amounted to over $1.6 billion this year.
One of the main objectives of the task force is to dismantle fraudulent schemes that promise high returns on crypto investments, which have lured many unsuspecting investors.
Additionally, the Ministry of Justice is gearing up to implement the Virtual Asset User Protection Act in July, a law designed to safeguard the assets of cryptocurrency users.
This crackdown highlights South Korea’s commitment to creating a transparent and secure environment for cryptocurrency trading. Despite these efforts, the country has been slower to adopt cryptocurrencies compared to other regions.
The move comes amid growing pressure on South Korean financial regulators to approve exchange-traded funds (ETFs) for cryptocurrencies.
Following the U.S. Securities and Exchange Commission’s approval of spot Ethereum ETFs, there is increased advocacy within South Korea to follow suit with Bitcoin and Ethereum ETFs.
Jung Eui-jung, head of the Korean Stockholders’ Alliance, has stressed the importance of aligning with the U.S. approach to boost investor confidence and market stability.
