South Korea is set to introduce a new cryptocurrency tracking system in 2023, aimed at countering money laundering and recovering funds linked to criminal activities. The Ministry of Justice announced plans to deploy the “Virtual Currency Tracking System” which will be used to monitor transaction history, extract information related to transactions and check the source of funds before and after remittance. The system is expected to be deployed in the first half of 2023, with plans to develop an independent tracking and analysis system in the second half of the year.
This move follows the South Korean police’s agreement with five local crypto exchanges to cooperate in criminal investigations and create a safer trading environment for crypto investors. The Supreme Court of South Korea has also recently ruled that crypto exchange Bithumb must pay damages to investors over a 1.5-hour service outage that occurred in 2017. The court stated that “the burden or the cost of technological failures should be shouldered by the service operator, not [the] service users who pay commission for the service”.
As the use of cryptocurrency continues to grow, governments around the world are taking steps to ensure that the digital assets are being used in compliance with laws and regulations. This new tracking system in South Korea is a clear indication that the country is taking a proactive approach in creating a safe and secure environment for crypto investors. With the deployment of this system, the country is positioning itself as a leader in the global fight against money laundering and other illegal activities related to cryptocurrency.
