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South Korea will be adopting a crypto-tracking system within the first half of 2023. With the new system in place, authorities will be able to monitor and analyze cryptocurrency transactions as part of the government’s anti-money laundering efforts.
South Korea’s Ministry of Justice (MOJ) announced that it will adopt a crypto tracking system, which it plans to implement within the first half of 2023, according to Bitcoin.com. The Justice Ministry said in its 2023 task report that the crypto tracking system will monitor and analyze transactions in digital currencies and is aimed at helping authorities uncover sources of illegal funds.
“We will overhaul the forensic infrastructure in response to the modernization of crime,” the Ministry of Justice stated, according to the report.
For many months, the Korean government has discussed implementing a system to help track illicit cryptocurrency transactions. The nation's Supreme Prosecutors' Office announced in October 2022 that it was in the process of using the Public Procurement Service to buy a crypto-tracking system.
Unlike the Supreme Prosecutors’ Office’s decision to purchase such a system, the Ministry of Justice opted for a different solution. The ministry said that it will develop its own crypto tracking and analysis system.
Aside from the Prosecutor’s Office and the Ministry of Justice, the Financial Supervisory Service is also planning to employ such a system. FSS Governor Lee Bok-hyun said earlier this month that the regulator is aiming to establish crypto monitoring tools to regularly evaluate the risks associated with crypto assets.
The National Police Agency of South Korea also entered into an agreement with the five largest cryptocurrency exchanges in the country last in October. The agreement would allow the police to gather information for crypto-related crime investigations.
Regulators worldwide are taking measures to help combat the use of digital currencies in illegal activities. Earlier this month, blockchain data analytics firm Chainalysis estimates that global crypto illicit transaction volume rose to an all-time high of $20.1 billion, up from last year’s estimate of $14 billion.
