South Korea Launches Joint Investigation Centre to Tackle Crypto Crimes

South Korea has launched the Joint Investigation Centre for Crypto Crimes, an interagency unit, to combat the escalating wave of crypto crimes.

The country's Prosecutor's Office expressed concern that cryptocurrencies are now comparable to stocks as investment products, but investors lack proper legal protection due to incomplete laws and systems.

They stated: "Virtual assets are investment products that already compare to stocks, but market participants are practically left out from legal protection amid incomplete laws and systems."

Approximately 30 experts from various agencies, including judicial, financial, tax, and customs, will be part of this pioneering team.

While waiting for a solid regulatory framework for the crypto market, the investigation unit aims to bridge the gap and enhance investor protection.

Their focus will be on highly volatile cryptocurrencies, aiming to combat illegal trading practices, tax evasion, unauthorized foreign exchange transfers, concealing criminal profits, and money laundering schemes.

The statement also highlighted the significant damages caused by crypto-based crimes in recent years.

In South Korea, crypto scams have surged by a staggering 118% over the past five years, resulting in a loss of approximately 1.02 trillion WON, equivalent to $797.81 million.

South Korea is positioning itself to better combat crypto crimes and safeguard investors from potential threats.