South Korea’s Ministry of Justice has initiated a specialized team to combat the growing number of crypto-related crimes, indicating a significant crackdown on fraud and market manipulation.
To address the rising instances of market manipulation and fraud in the cryptocurrency sector, South Korea is ramping up its efforts by forming a dedicated task force in partnership with local regulatory agencies. As outlined in a regulatory report, the task force, operating under the Ministry of Justice, is focused on tackling incidents of price manipulation, unregistered crypto exchanges, and deposit fraud, all of which have been impacting the population more frequently.
The report highlights that illicit activities involving cryptocurrencies in South Korea have already exceeded $1.6 billion this year. The primary goal of the task force is to dismantle fraudulent schemes that promise high returns on crypto investments. Furthermore, the Ministry is gearing up to implement the Virtual Asset User Protection Act in July to safeguard the assets held by crypto users.
In a move that emphasizes South Korea’s dedication to promoting a transparent crypto trading environment, the country is pushing forward with regulatory measures, although it still trails behind other regions in terms of crypto adoption.
Recent reports have indicated that South Korean financial regulators are facing growing pressure to approve cryptocurrency exchange-traded funds (ETFs), following the approval of spot Ethereum ETFs by the U.S. Securities and Exchange Commission. Jung Eui-jung, the head of the Korean Stockholders’ Alliance, has stressed the importance of emulating the U.S. by endorsing Bitcoin and Ethereum ETFs, reflecting widespread frustration with Seoul’s cautious stance on cryptocurrency regulation.
Additionally, the Korean tax service is considering the development of a new platform to monitor all crypto transactions, further demonstrating the country’s commitment to regulating the cryptocurrency industry.