In response to the growing concerns about the rise in cryptocurrency-related crimes, South Korea is creating a specialized department to address this issue. The Seoul Southern District Prosecutor’s Office has identified a lack of resources for effectively tackling crypto fraud, prompting the temporary delegation of responsibilities to another department. The newly formed department will include prosecutors experienced in virtual asset investigations and will receive additional funding from the budget.

Authorities in South Korea have observed a significant increase in suspicious transactions involving virtual assets, with official statistics reporting a 49% surge from 2022 to 2023, totaling over 16,000 cases.

Upcoming cryptocurrency regulations in South Korea are scheduled to become effective on July 19, 2024. Discussions are ongoing regarding the penalties for market manipulation of cryptocurrencies, with the consideration of imposing life sentences.

During the parliamentary elections, both of South Korea's major political parties made commitments to local investors, pledging to implement policies that promote the growth of the cryptocurrency industry.