The Ministry of Justice in South Korea announced that the government is planning on adopting a crypto-tracking system in the first half of 2023.
The announcement also detailed that the purpose of adopting the tracking system is to monitor crypto transactions that take place in the country and analyze them in order to identify sources of illegal funds.
Crypto transaction tracking
The Ministry of Justice (MOJ) announced that they plan on adopting the said crypto tracking system as soon as possible.
The Justice Ministry had shared its intention of doing so in the 2023 task report and it elaborated the reasons for implementing the crypto tracking system.
The system is aimed at facilitating the South Korean government in monitoring and analyzing crypto transactions, especially to assist in identifying illegal funds and their sources.
The ministry said that they intend to overhaul the forensic infrastructure because this was becoming necessary in light of the modernization of crime.
Talks have been ongoing for several months in the South Korean government about developing a tracking system for monitoring crypto transactions in order to identify illegal ones.
The Supreme Prosecutors’ Office of South Korea said last year in October that it was working on using the Public Procurement Service in order to purchase a crypto tracking system.
However, the Ministry of Justice has also noted that it is planning on developing its own system for crypto tracking and analysis and would accomplish this goal in the first half of this year.
Before the announcement was made by the Ministry of Justice, the Governor of the Financial Supervisory Service (FSS), Lee Bok-hyun, had also issued a statement earlier in January.
He said that the regulator was working on the development of crypto monitoring tools because they would be helpful in assessing the risks that are associated with crypto assets.
The National Police Agency of South Korea also entered into an agreement last year in October with the five prominent crypto exchanges in the country.
The agreement was about collecting data for investigations pertaining to crypto-related criminal activities.
The Department of Justice (DOJ) in the United States also established the ‘Digital Asset Coordinator Network’ in the country last year in September.
It comprises 150 federal prosecutors and was established for combating the use of digital assets technology for criminal use, which has continued to evolve.
Earlier this month, the blockchain analytics firm, Chainalysis, had disclosed that the global volume of illicit crypto transactions had touched an all-time high value of $20.1 billion.
This was significantly higher than the volume a year earlier when it had stood at $14 billion. It is this rise in illegal crypto-related activities that has prompted many governments to become proactive.
The same is true in the case of South Korea and the government is also taking steps to mitigate the crime-related risks associated with cryptocurrencies, which are becoming more and more evident.