South Korea Takes Steps To Track Crypto Transactions, Combat Money Laundering

The South Korean Ministry of Justice has outlined a plan to fight money laundering via cryptocurrency in a task report released Thursday.

What Happened: The ministry intends to start tracking crypto transactions using third-party software initially to examine transaction history, gather information on transactions and verify the origin of funds.

In the latter half of the year, the ministry intends to develop its own monitoring system.

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An agreement was made in October between South Korean police and domestic crypto exchanges such as Upbit, Bithumb, Coinone, Corbit and Gopax to collaborate in criminal investigations related to crypto.

Currently, Bithumb is under investigation for tax evasion and market manipulation.

Why It Matters: Lawmakers in South Korea are evaluating 17 different proposals for regulating cryptocurrency, from which they aim to draft the Digital Asset Basic Act.

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Photo: Dragon Claws via Shutterstock