The South Korean Government Makes A Cryptocurrency Tracking System

South Korea created a cryptocurrency tracking system. (Photo; Doc. Bitcoinist)

JAKARTA The South Korean government strengthens regulations and controls on cryptocurrencies by introducing a "virtual asset tracking system". The Ministry of Justice announced that 75 percent of illegal foreign exchange transactions are linked to cryptocurrencies.

To help address the issue, the Ministry of Justice will introduce a "crypto tracking system" in the first half of this year. This system will track transactions related to money laundering and proceeds of crime.

The ministry will examine and monitor transaction records, extract details of the relationship between transactions and confirm the source of the funds before and after transfer.

As part of efforts to strengthen crypto regulation, the Ministry of Justice also plans to build a "National Digital Forensic Cloud System" over the first half of this year. This cloud system will allow other agencies to use a forensic cloud system.

Last year, the Cyber Investigation Bureau of the National Police Agency signed an agreement with five major crypto exchanges in South Korea, in an effort to prevent the use of virtual assets illegally and create a safe trading environment.

Not only South Korea, the US Department of Justice also established a "Digital Asset Coordinating Network" to track crypto-related crimes. The network was created as part of a digital asset regulatory framework announced by the White House in September last year.

The government is strengthening cryptocurrency surveillance efforts to ensure trade security and prevent money laundering and other crimes. The crypto tracking system launched by the South Korean government is part of efforts to prevent financial crimes in crypto trading companies and provide protection to South Korean investors.