South Korea Bolsters Crypto Crime Fight: Dedicated Unit to Become Official

South Korea's prosecution service is set to establish a dedicated cryptocurrency crime investigation unit, reflecting the growing importance of tackling crypto-related criminal activities in the country. Initially established as a task force in mid-2023, the Joint Investigation Unit (JIU) for virtual asset crimes has demonstrated significant progress in its mission to combat crypto fraud and other related crimes.

The JIU has indicted 41 individuals, arrested 18, and seized assets worth approximately 141 billion South Korean won ($97.5 million), including Bitcoin, altcoins, and luxury items. As crypto crime cases continue to rise, the government recognizes the need for a more systematic and coordinated approach. The Ministry of Justice plans to amend the Enforcement Decree of the Prosecutor’s Office Act, allowing the JIU to become an official entity with additional resources, including more prosecutors.

The new department will consist of prosecutors and representatives from regulatory bodies such as the Financial Supervisory Service, the Financial Intelligence Unit, and other key government agencies. This collaboration will enhance the department's ability to handle the complexity of cryptocurrency-related crimes, which often involve price manipulation and fraud. The JIU has already seized valuable assets, including luxury buildings and sports cars, in its efforts to combat crypto fraud.

With its growing workload, South Korea's government believes that formalizing the unit will improve its ability to respond efficiently to the increasing challenges in the crypto space. The Ministry of Justice is currently gathering public feedback on the revised proposal, with plans to finalize the unit's formal launch by early March 2025. This move is part of South Korea's ongoing efforts to regulate and police the fast-evolving cryptocurrency market.