In response to the surge in cryptocurrency-related crimes in South Korea, the country is taking the matter seriously by planning to transform the temporary crypto-crime investigative unit into a permanent department. Reports from local publications indicate that this move is aimed at addressing the escalating concerns around crypto crimes.

Last year, South Korea witnessed over 16,000 suspected illegal activities reported by crypto companies, marking a 40-fold increase. The urgency around crypto security intensified as reports revealed a rapid growth in illegal crypto-related activities linked to local crypto companies. Shockingly, the number of reported suspicious transactions in 2023 showed a 49% increase compared to the previous year.

The Financial Services Commission (FSC) highlighted a significant surge in virtual asset-related crime cases, with a 90% increase during the review period. The economic impact of virtual asset-related crimes over the past five years exceeded 5.3 trillion won.

Given these alarming statistics, South Korea is stepping up its efforts to combat crypto crimes. The Justice Ministry and the Ministry of the Interior and Safety are set to commence discussions in early May to establish the Joint Virtual Asset Crime Investigation Unit as an official entity.

The proposed upgrade will elevate the unit's status, granting it a mandate for continuous operation. Currently, the unit operates under the District Prosecutor of Seoul on an emergency basis, but this arrangement may change with increased prosecutors and budget allocation for enhanced efficiency.

Established in July 2023, the Joint Virtual Asset Crime Investigation Bureau comprises over 30 professionals from seven financial and tax regulatory entities. It plays a crucial role in investigating the criminal aspects of digital assets in South Korea.

Furthermore, South Korea implemented its first public law on July 19, intended to enforce comprehensive crypto regulations to protect investors and combat illegal activities in the crypto market. The new regulations include severe punishments, such as life sentences in certain cases, to deter market manipulation.

As South Korea strengthens its legislative framework and law enforcement capabilities to tackle crypto crimes, a clear message is being sent that criminal activities will not be tolerated, and stringent measures are in place to safeguard the digital asset ecosystem.