The unit currently operates as a temporary entity overseen by the Seoul Southern District Prosecutor’s Office. The new regulation will elevate its status by appointing new prosecutors and allocating a budget.
The unit comprises 30 experts from seven different financial and taxation authorities and was launched last July as the nation’s first body focusing solely on digital asset-related crimes. Per a February report for the nation’s Financial Intelligence Unit (FIU), 16,076 suspicious transitions were flagged by the watchdog.
The FIU said the number of crimes increased by 48.8% since 2022. The transactions were linked to a multitude of illicit activities, including money laundering, market manipulation, and illegal drug trades.
The primary driver for the growth was attributed to the FIU’s engagement with local cryptocurrency service providers, urging these entities to report suspicious activities. The efforts also led to a 90% increase in crypto cases forwarded to law enforcement for investigation.
The scammers guaranteed 70% earnings for a monthly investment of 1 billion won. Meanwhile, South Korea is set to implement its first crypto regulatory framework on July 19.
The law will see stricter penalties for crypto market manipulators, with even life imprisonment sentences based on the severity of the crime.