The Ministry of Justice in South Korea announced plans to introduce a crypto tracking system to combat money laundering initiatives and recover funds related to criminal activities.
The ‘Virtual Currency Tracking System’ will be used to monitor transaction history, extract transaction-related information and check the source of funds before and after remittance, according to local media outlet khgames.
South Korea’s Ministry of Justice will introduce a “cryptocurrency tracking system” in the first half of this year to strengthen the tracking of money laundering and the recovery of criminal proceeds using cryptocurrencies. https://t.co/2CLkaLUrX6
— Wu Blockchain (@WuBlockchain) January 29, 2023
While the system is scheduled to be deployed in the first half of 2023, the South Korean ministry has indicated plans to develop an independent tracking and analysis system in the second half of the year. A rough translation of the ministry’s statement:
“In response to the sophistication of crime, we will increase the forensic infrastructure (infrastructure). We will build a criminal justice system that meets international standards (global standards).
South Korean police previously made an agreement with five local crypto exchanges to cooperate in criminal investigations – to create a safe trading environment for crypto investors at last.
Related: South Korean prosecutors seek arrest warrant for Bithumb owner: Report
South Korea’s Supreme Court ruled that crypto exchange Bithumb must pay compensation to investors over a 1.5-hour service outage on November 12, 2017.
The final judgment of the Supreme Court ordered damages ranging from $6 to $6,400 to be paid to 132 investors involved.
“The burden or cost of technology failure should be borne by the service operator, no [the] it is the service user who pays the commission for the service,” the court said.