The Ministry of Justice in South Korea is working on a crypto tracking system as part of its money laundering and tracking of digital assets linked to criminal activity.
The South Korean government will use the Virtual Currency Tracking System to monitor transaction history, obtain related information, and verify the source of funds before and after remittances. This was reported by the local media.
The crypto tracking system will be introduced in the first half of 2023. The Republic of Korea also plans to launch the National Digital Forensic Cloud System, a government infrastructure for criminal justice that will meet international standards. The system’s key goal is to prevent the illegal use of digital assets.
The South Korean authorities are actively working on a legislative framework to regulate the crypto market in the country. The Financial Supervisory Service (FSS) is investigating several market participants to prevent using digital assets for money laundering. South Korean police signed an agreement with five local crypto exchanges to cooperate in criminal investigations.
