South Korea’s Ministry of Justice forms task force to damper crypto crimes

South
Korea’s
Ministry
of
Justice
has
launched
a
special
task
force
to
combat
the
increasing
prevalence
of
crypto
crimes,
signaling
a
major
crackdown
on
fraud
and
market
manipulation.

South
Korea
is
intensifying
efforts
to
clamp
down
on
market
manipulation
and
fraud
in
the
cryptocurrency
industry
by
establishing
a
special
task
force
in
collaboration
with
local
regulatory
bodies.
According
to
a

regulatory
document,
the
task
force
under
the
Ministry
of
Justice
targets
plans
to
target
cases
of
price
manipulation,
unregistered
crypto
exchanges,
and
deposit
fraud,
which
have
increasingly
affected
citizens.

The
document
reveals
that
illicit
activity
involving
crypto
in
South
Korea
has
already
surpassed
$1.6
billion
this
year.
The
task
force
aims
to
dismantle
schemes
promising
high
returns
on
crypto
investments.
In
addition,
the
Ministry
is
preparing
to
enforce
the
Virtual
Asset
User
Protection
Act,
set
to
be
implemented
in
July,
to
ensure
the
protection
of
assets
held
by
crypto
users.

The
latest
initiative
underscores
South
Korea’s
commitment
to
fostering
a
transparent
environment
for
crypto
trading,
even
though
the
country
lags
behind
other
regions
in
crypto
adoption.

As
crypto.news

reported
earlier,
South
Korean
financial
regulators
face
mounting
pressure
to
approve
exchange-traded
funds
(ETFs)
for
cryptocurrencies,
following
the
U.S.
Securities
and
Exchange
Commission’s
recent
approval
of
spot
Ethereum
ETFs.
Jung
Eui-jung,
head
of
the
Korean
Stockholders’
Alliance,
has
emphasized
the
importance
of
following
the
U.S.
example
by
endorsing

Bitcoin
and

Ethereum
ETFs,
reflecting
broader
frustration
with
Seoul’s
cautious
approach
to
cryptocurrency
regulation.