1. BITBILIHome
  2. Article

South Korea bolsters crypto oversight with LEI integration & a crime unit

• 57 views

TL;DR Breakdown

  • South Korea has launched an inter-agency investigation unit to combat the surge of crypto crimes, including hacking, scams, and money laundering in the country.
  • The interagency probe team brings together experts from different government departments to respond to emerging crypto threats and protect investors swiftly.
  • Korea Securities Depository and Code, a travel rules company, signed a business agreement in Seoul to promote LEI (Legal Entity Identifier) use in the virtual asset market.

Description

South Korea has taken decisive action by forming an interagency investigation team to address the growing concerns over cryptocurrency crimes. The crypto market has grown increasingly popular and drawn a wide range of investors, but it has also become a haven for illegal activity.  This action represents a significant step towards enhancing national crypto regulation. … Read more

South Korea has taken decisive action by forming an interagency investigation team to address the growing concerns over cryptocurrency crimes. The crypto market has grown increasingly popular and drawn a wide range of investors, but it has also become a haven for illegal activity. 

This action represents a significant step towards enhancing national crypto regulation. South Korea wants to defend its citizens from scams and maintain the integrity of its financial systems; thus, it has adopted Legal Entity Identifiers (LEIs) and created a dedicated criminal unit.

South Korea launches crypto crime unit

According to reports incoming from Asia, South Korea has formed a dedicated crypto-crime investigation team in response to a rise in crypto-related crime.

Since complete laws for the crypto industry have yet to be enacted in South Korea, a multi-agency collaborative virtual asset crime investigation team has been established to protect investors in the meantime.

Additionally, 30 investigators from different government departments and organizations in South Korea, including the prosecution, the Financial Supervisory Service, the National Tax Service, and the Korea Customs Service, are set to make up the Joint Investigation Centre for Crypto Crimes, which will be based out of the Seoul Southern District Prosecutors’ Office.

The Prosecutor’s Office issued a statement saying, “Despite the fact that virtual assets are already investment products comparable to stocks, the laws and systems are not complete, leaving market participants practically left out of the protection of the law.” More than 3 trillion won ($2.35 million) daily is traded in virtual assets, with more than 6 million participants.

The Prosecutors’ Office further stated that until suitable rules are adopted, it will play an active role in protecting investors in the crypto industry. The investigation process for crimes involving cryptography, from detection through analysis, is intended to be simplified.

This expedited process will allow for better case management, which will help reduce illegal activity in the crypto market.

Establishing the interagency investigation unit

According to the data provided, cryptocurrencies with extreme price swings or threatened de-listings will be primary targets of the probes.

Due to the unpredictability of some cryptos, the new section will also be responsible for detecting and counteracting unlawful trading practices like market manipulation and insider trading.

The team will also investigate tax evasion, unapproved foreign exchange transfers, and other attempts to hide unlawful profits. Because cryptocurrencies can be used to conceal the origin of illegal payments, authorities are also cracking down on instances of money laundering.

According to a local news report by Decenter, the LEI introduced by Korea Securities Depository and Code is a standardized ID issued to corporations around the globe that engage in financial transactions. As a result of the 2008 financial crisis, it was implemented for the efficient administration of financial transaction data.

The Prosecutor’s Office reported that the number of suspicious transactions across local crypto exchanges increased by as much as 1,263% over the past 18 months, from 66 in 2021 to 900 in 2022 and to 943 in the first half of 2023 alone, highlighting the growing difficulties and risks associated with the crypto market.

South Korean opposition lawmaker Kim Nam-kuk is one of the latest high-profile figures to be linked to allegations of fraudulent crypto trading totaling 6 billion won ($4.54 million).

Furthermore, looking into what caused the Terra ecosystem to collapse last year, the Seoul Southern District Prosecutors’ Office. When the TerraUSD (UST) and LUNA crypto associated with the project collapsed in May 2022, they were the ninth and tenth largest cryptos by market value, respectively, and about $55 billion in investor funds were lost.

The aggressive measures South Korea took to combat the increasing number of crypto crimes, such as creating an interagency investigation team and adopting Legal Entity Identifiers (LEIs), are indicative of this. 

According to Koh Chang-seop, director of the Securities Settlement Division at Korea Securities Depository, the LEI will replace the Foreign Investment Registration Certificate beginning in December to increase transparency.

The country is laying the groundwork for a more reliable crypto economy by tightening crypto legislation and increasing cooperation amongst government organizations. Other countries may want to follow suit, but with everyone’s support, we can create a crypto ecosystem that is secure and robust.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

文章来源于互联网:South Korea bolsters crypto oversight with LEI integration & a crime unit

Disclaimers:

1. You are solely responsible for your investment decisions and this info is not liable for any losses you may incur.

2. The copyright of this article belongs to the writer, it represents the writer's opinions only, not represents the site's ones. Not financial advice.

Previous 2023年7月27日 08:58
Next 2023年7月27日 10:37

Related articles

  • Cypher Protocol successfully freezes $600,000 in stolen cryptocurrency funds on CEX

    TL;DR Breakdown Cypher Protocol froze $600,000 in stolen cryptocurrency after a security breach on August 7, where $1 million in assets were drained. The team partnered with investigators and offered a 10% bounty to the hackers but did not recover the funds. A redemption plan was introduced to support affected users. Description In a significant move to safeguard its platform, Cypher Protocol, a decentralized future exchange operating on the Solana blockchain, has successfully frozen more than half of the funds stolen in cryptocurrency during a recent security breach. As of August 18, Cypher Protocol’s team has effectively frozen nearly $600,000 in cryptocurrency, which had been unlawfully taken … Read more In a significant move to safeguard its platform, Cypher Protocol, a decentralized future exchange operating on the Solana blockchain, has successfully frozen more than half of the funds stolen in cryptocurrency during a recent security breach. As of August 18, Cypher Protocol’s team has effectively frozen nearly $600,000 in cryptocurrency, which had been unlawfully taken from various centralized exchanges.  update from cypher ~$600k has been frozen across CEXs, the return…

    Article 2023年8月19日

  • Nigeria’s central bank adjusts eNaira model and hikes interest rate amid economic challenges

    TL;DR Breakdown The Central Bank of Nigeria (CBN) is modifying its eNaira model to encourage wider use of the digital currency, despite challenges such as lack of infrastructure and limited merchant acceptance. The CBN has also increased the Monetary Policy Rate from 18.5% to 18.75% to curb inflation, marking the first such decision by the new administration. These decisions highlight the challenges facing Nigeria’s economy and the efforts to promote digital currency adoption and manage inflation Description The Central Bank of Nigeria (CBN) is altering the model of its central bank digital currency (CBDC), the eNaira, to encourage more usage. Despite the number of eNaira wallets increasing to 13 million between October 2022 and March 2023, the adoption rate remains low for a country with a population of nearly 224 million.  The … Read more The Central Bank of Nigeria (CBN) is altering the model of its central bank digital currency (CBDC), the eNaira, to encourage more usage. Despite the number of eNaira wallets increasing to 13 million between October 2022 and March 2023, the adoption rate remains low for…

    Article 2023年7月26日

  • China demands EU’s clear stance on their relationship

    TL;DR Breakdown China’s chief diplomat, Wang Yi, has requested the European Union to clarify its stance on their strategic partnership. This follows a shift in EU-China relations since 2019, with the EU viewing China as an economic competitor and “systemic rival”. EU leaders have recently been advocating for reduced dependence on China, a contrast to the original intent of their strategic partnership. Description Bridging the divide between China and the European Union has become a pressing matter for top diplomats. Wang Yi, China’s chief diplomat, recently called for the EU to provide greater clarity regarding the strategic partnership that binds these global powerhouses. Building trust or back-pedalling? In 2003, the European Union and China embarked on what was … Read more Bridging the divide between China and the European Union has become a pressing matter for top diplomats. Wang Yi, China’s chief diplomat, recently called for the EU to provide greater clarity regarding the strategic partnership that binds these global powerhouses. Building trust or back-pedalling? In 2003, the European Union and China embarked on what was deemed a comprehensive strategic…

    Article 2023年7月16日

  • How inflation is pushing the Fed’s buttons

    TL;DR Breakdown U.S. faces unexpected inflation rise, challenging its control over it. University of Michigan’s survey reveals a year-ahead inflation outlook of 3.1%, the lowest since March 2021. Consumer behavior aligns with inflation expectations, potentially influencing market outcomes. Description A recent uptick in inflation, challenging the U.S.’s supposed grip over it, is certainly causing some sleepless nights for economists and policymakers alike. As the current trend hovers above expected numbers, questions arise: How will the Federal Reserve respond, and what are consumers genuinely feeling about this economic turbulence? Public Perception vs. Hard Data Dive … Read more A recent uptick in inflation, challenging the U.S.’s supposed grip over it, is certainly causing some sleepless nights for economists and policymakers alike. As the current trend hovers above expected numbers, questions arise: How will the Federal Reserve respond, and what are consumers genuinely feeling about this economic turbulence? Public Perception vs. Hard Data Dive into the recent survey results from the University of Michigan, and you’ll spot a notable trend. Their preliminary data from September revealed that the year-ahead inflation outlook stood…

    Article 2023年9月20日

  • U.S. sends clear message on China’s ban of Micron chips

    TL;DR Breakdown The U.S. opposes China’s effective ban on Micron Technology’s memory chips, deeming it as economic coercion. U.S. Commerce Secretary Gina Raimondo voiced concerns over China’s actions and reaffirmed the U.S.’s commitment to work with allies on this issue. Raimondo highlighted the $52 billion CHIPS Act, which seeks to strengthen domestic semiconductor production in the country. In the global technology landscape, tensions are rising as the U.S. asserts its disapproval over China’s de facto prohibition on the acquisition of memory chips produced by Micron Technology. The clear message from the United States government is its unequivocal refusal to tolerate what it sees as “economic coercion” aimed at an American corporation. The situation: Micron’s plight and China’s unwelcomed stance On May 21, China’s cyberspace regulator declared that Micron, a leader in the U.S. memory chip manufacturing sector, had not passed its network security review. Consequently, the regulator declared its intention to prevent operators of crucial infrastructure from purchasing from the company. This move, which threatens to curtail Micron’s revenue, provoked a strong response from the government. Commerce Secretary Gina Raimondo…

    Article 2023年5月31日
TOP