A special crypto-crime investigation division in the South Korean prosecution is preparing to launch before the spring of 2025. According to Aju Press, this project is a strategy shift to fill the communication gaps within the domestic authorities, such as the FIU and the international counterparts. The move from just having a group of individuals working on the problem without formal structure to one that is a complete division hopes to increase coordination and effectiveness in handling digital currency offenses.
New developments in the Lazarus Group from North Korea have made it necessary for this new division. The gang has been alleged to have utilized a payment processor firm from Cambodia to perpetrate more than $150,000 in digital money from rip-offs. Lazarus Group, a state-sponsored hacker organization, is notorious for deriving over 50% of its foreign currency from cybercrime. Cryptocurrency hacking alone has reportedly contributed around $3 billion to their operations. This uninterrupted and highly technical laundering process demonstrates how and to which extent criminals are willing to execute their intentions, particularly in Asia-Pacific.
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New Techniques of Fighting Crypto-Related Crime
As a result of these threats, South Korea is strengthening its legislation in response to the introduction of the Virtual Asset User Protection Act. The specified law was enacted on July 19, 2024, prohibiting market manipulation, and illicit trading, and protecting crypto asset users from information misuse. Opening up the financial exchange of the given countries and monetary areas implies drastic sanctions to violators, including high penalties and imprisonment for offenders. Crypto crime suspects who are believed to make more than $5 billion from the crimes may be subjected to life imprisonment.
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The National Assembly passed this legislation in July 2023, and VASPs had a year’s grace period to bring it into force. On this score, more regulations have been defined over the same period. In addition, the FSC has recently ‘given’ the first legislative notice concerning the enforcement decree and the supervisory regulations. Therefore, the following events reveal South Korea’s intent to improve readiness for crypto crime. The new investigation division is one of the critical parts and the foundation of constructing a protective layer for the users from various unlawful misconducts, or addressing the regulation of the Virtual Asset User Protection Act for better-improved protection and surveillance over the cryptocurrency market.
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Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.