South Korea Considers Crypto Tracking Mechanism

For several months, the South Korean authorities have implemented a series of measures aimed at regulating crypto activities. This approach was accentuated with the fall of the FTX exchange platform, which has nearly 6,000 users in Korea.

A mechanism to counter money laundering

On January 29, the government of South Korea announced that it will work to develop a device to track crypto transactions this year. The information comes from local media Khgames. The system is called: “Virtual Currency Tracking System”. It will be available to monitor how crypto transactions are going in the country. Concretely, it is a means for the State to control these operations.

The method should make it possible to obtain information concerning the history of the crypto operations carried out and the parties involved. The system should also be able to provide details regarding the origin of the funds. It will also give information about their destinations as well as the operator who made them.

Will the solution end the actions of bad crypto actors?

This project, whose implementation date is for the first quarter of 2023, will limit money laundering. A phenomenon against which the authorities have waged a fierce war for several months.

A further step towards the regulation of the crypto industry?

The least we can say is that through this device, the Korean authorities are strengthening their arsenal to fight fraud on the crypto market a little more, but not only. 2022 has been a year that has seen South Korea multiply measures to increase its intervention in this sector.

In September, for example, the government seized $184 million in crypto assets linked to tax evasion, carried out through virtual asset platforms. More recently, in November, the Financial Services Commission (FSC) initiated investigations targeting active exchanges. The investigation opened in the context of the sinking of FTX (which did not spare Korean users), aims to monitor compliance with the principle that exchanges do not have the right to issue their own assets.

Be that as it may, Korea seems more than ever determined to fight fraudsters.

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