South Korea intends to convert its current temporary crypto crime investigative unit into an official department under the leadership of the Justice Ministry and the Ministry of the Interior and Safety. Discussions are expected to commence in early May to transition the Joint Virtual Asset Crime Investigation Unit into a fully-fledged government entity.

The unit, presently operating under the Seoul Southern District Prosecutor’s Office, risks dissolution unless granted permanent status. The proposed transition aims to boost operational efficiency by appointing more prosecutors and designating a specific budget.

Formed in July 2023, the unit comprises around 30 experts from seven financial and tax regulatory bodies, serving as South Korea’s premier investigative body targeting digital asset-related crimes.

This decision comes in light of a notable surge in crypto-linked criminal activities. Local cryptocurrency companies documented over 16,000 suspicious transactions in 2023 alone.

The establishment of a permanent department reflects South Korea’s commitment to combatting the escalating cryptocurrency crime challenges, showcasing its proactive stance in regulating the evolving digital asset market.