The government will also adjust the number of prosecutors at the Seoul Southern District Prosecutors’ Office to enhance enforcement efforts.
The government of South Korea is planning to upgrade its specialized task force for virtual asset crimes into a full-fledged investigation unit as the country intensifies efforts to combat crypto-related offenses.
The move comes amid a surge in crypto fraud, money laundering, and other illicit activities, prompting authorities to strengthen enforcement measures.
From Task Force to Permanent Unit
According to a local news report, the task force known as the Joint Investigation Unit (JIU) for Virtual Asset Crimes was initially launched as a temporary unit in mid-2023 in collaboration with other financial agencies such as the Financial Supervisory Service, the Financial Intelligence Unit (FIU), the Korea Exchange, the National Tax Service, the Korea Customs Service, and the Korea Deposit Insurance Corporation.
Since then, the group has played a crucial role in cracking down on illegal crypto activities.
Over the past year, the task force has indicted 41 individuals, arrested 18 suspects, and seized assets worth approximately 141 billion South Korean won ($97.5 million), including Bitcoin BTC $84 493 24h volatility: 0.4% Market cap: $1.68 T Vol. 24h: $13.88 B altcoins, and luxury goods.
Due to the unit’s success, the South Korean Ministry of Justice has written a formal petition to upgrade it into a permanent division within the prosecution service by February or March 2025. This move reflects the government’s commitment to stricter regulatory oversight and its zero-tolerance policy on crypto-related crimes.
Alongside the forthcoming upgrade, the government intends to adjust the number of prosecutors assigned to the Seoul Southern District Prosecutors’ Office.
The public is set to weigh in on the revised enforcement ordinance by February 5. Following this, the Ministry of Justice aims to finalize the official launch before the end of March.
South Korea’s Growing Crackdown on Crypto Crimes
South Korea has long been a global leader in cryptocurrency adoption, but with widespread use has come a rising number of criminal cases.
The government has stepped up regulatory efforts in recent years, tightening laws around crypto exchanges, imposing stricter AML (Anti-Money Laundering) policies, and introducing investor protection measures.
Earlier this month, South Korean financial authorities ordered the suspension of Upbit, the country’s largest cryptocurrency exchange, citing its failure to adequately verify user identities before registration.
According to a previous report by Coinspeaker, officials uncovered between 500,000 and 700,000 cases of improper KYC (Know Your Customer) verification during a review of the company’s license renewal application.
In November 2024, South Korean law enforcement arrested 215 individuals suspected of defrauding crypto investors out of 320 billion won ($228.4 million). Reports indicate that the accused orchestrated a large-scale scheme, luring investors with promises of high returns. Using an unlawful trading platform, they allegedly sold 28 different cryptocurrencies to over 15,000 investors under false pretenses of guaranteed profits.
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