Bitrabo Editorial
According to a local news report, South Korea has expressed its intention to develop a system that will allow monitoring of wallet addresses in real-time and enable freezing of funds on various crypto exchanges, including Binance, to enhance regulatory oversight. To discuss implementation strategies of monitoring measures, South Korean police agency is scheduled to organize a meeting with Binance and the country’s top five cryptocurrency exchanges.
South Korea is the world’s second-largest cryptocurrency market, and regulatory agencies’ involvement in supervising cryptocurrency exchanges and firms is crucial.
The meeting will include prominent crypto exchanges such as Binance, Upbit, Bithumb, Coinone, Korbit, and Gopax- the top five exchanges in South Korea.
Binance re-enters the South Korean Market
Recently, Binance acquired a majority stake in Gopax, allowing the exchange to return to the South Korean market. As the largest crypto exchange globally, Binance has well-equipped teams that monitor and report suspicious activities to law enforcement authorities. The exchange has been actively training government agencies to combat cryptocurrency-related crimes.
In October 2022, the South Korean police signed agreements with five cryptocurrency firms to establish the virtual asset exchange confirmation system, which facilitated information sharing with major exchanges for cryptocurrency wallet investigations. Reports indicate that the system is currently being utilized by 2,086 investigators as of May 2023. The agency aims to expand the system’s reach to include all 36 domestic crypto exchanges while further expanding its monitoring abilities.
The Introduction of Preventive Laws on Cryptocurrencies Strengthens Investigations
To promote cryptocurrency oversight, South Korea has implemented various measures. Recently, the Preventive Law necessitates government personnel to disclose their cryptocurrency holdings, ensuring transparency and accountability among public officials. Authorities have been leveraging blockchain analytics to enhance the investigation’s ability to combat cryptocurrency-related crimes and identify potential instances of money laundering.
South Korea is also planning to increase the workforce of its investigation departments. The Financial Supervisory Service in South Korea has devised a multifaceted plan, which includes expanding the number of individuals in the three investigation departments from 70 to 95. They are also establishing a special investigation team, an information collection task force, and a digital investigation response team to improve surveillance, collect relevant information, and respond promptly to digital financial crimes. These measures demonstrate South Korea’s commitment to robust regulatory frameworks and their vigilance in monitoring the cryptocurrency landscape.
Featured Image From UnSplash, Chart From TradingView.com