South Korea to Start Tracking Crypto Transactions in Bid to Crack Down on Money Laundering
The country will start off using a third-party system while it develops its own software.
Jan 30, 2023 at 10:33 a.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/ACEHWUSTDFH2RFJ7FFWNGKASUM.jpg)
(KINNYtv/Pixabay)
/arc-photo-coindesk/arc2-prod/public/LXF2COBSKBCNHNRE3WTK2BZ7GE.png)
South Korea’s Ministry of Justice plans to start tracking crypto transactions as it looks to crack down on money laundering, it said in a task report published Thursday.
The ministry will initially use third-party software to monitor transaction history, extract information on transactions and check the source of funds. It plans to develop its own system, which should be ready in the second half of the year.
South Korean police signed an agreement in October with domestic crypto exchanges Upbit, Bithumb, Coinone, Corbit, and Gopax, pledging cooperation in criminal investigations involving crypto. Bithumb is currently under investigation for tax evasion and price manipulation.
South Korean lawmakers are currently considering 17 separate proposals on regulating crypto, from which they plan to formulate the Digital Asset Basic Act.
CoinDesk reached out to the MOJ for comment.
Disclosure
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.
:format(webp)/www.coindesk.com/resizer/HlSbDKjRcYjbi2OIKQ1HXzRUXZI=/arc-photo-coindesk/arc2-prod/public/CZ3KD5AAFFGLDAVJKLCVXNUXQI.JPG)
Lavender Au is a CoinDesk reporter with a focus on regulation in Asia. She holds BTC, ETH, NEAR, KSM and SAITO.
Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.