The South Korean government will adopt a cryptocurrency tracking system in the first half of this year, the country’s Ministry of Justice has reportedly announced. The tracking system will be used to monitor and analyze crypto transactions, particularly to discover the sources of illegal funds.

South Korea will start tracking crypto transactions in 1H

South Korean Ministry of Justice (MOJ) reportedly announced that it will adopt a cryptocurrency tracking system in the first half of this year.

In its task report 2023, the Ministry of Justice explained that the tracking system will be used to monitor and analyze cryptocurrency transactions, particularly to discover the sources of illegal funds. The ministry was quoted by local media as saying:

We will review the forensic infrastructure in response to the modernization of crime.

The Korean government has been talking about adopting a system to track illegal crypto transactions for many months. In October last year, the country’s Supreme Prosecutor’s Office said it was in the process of purchasing a cryptocurrency tracking system through the Public Procurement Service.

The Ministry of Justice noted that it will develop its own cryptocurrency monitoring and analysis system in the second half of the year.

The Justice Ministry’s announcement followed a statement by Financial Supervisory Service (FSS) Governor Lee Bok-hyun, who said earlier this month that the regulator plans to develop crypto monitoring tools to regularly inspect the risks associated with crypto assets. Additionally, the South Korean National Police Agency signed an agreement with the country’s five major cryptocurrency exchanges last October to collect data for cryptocurrency-related crime investigations.

In the United States, the Department of Justice (DOJ) established the nationwide “Digital Asset Coordinators Network” of more than 150 federal prosecutors in September of last year to “combat the ever-evolving criminal uses of digital asset technology,” the Justice Department noted at the time.

Data analytics firm Blockchain Chainalysis estimated earlier this month that the global volume of illicit crypto transactions reached an all-time high of $20.1 billion, up from $14 billion in illicit activity in the prior year.

What do you think of the South Korean government adopting a cryptocurrency tracking system? Let us know in the comments section.

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