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Taskforce to Deal With Cryptocurrency Security and Fraud Issues Created in South Korea

South Korea has one of the most vibrant cryptocurrency industries in the world. The government has put in place regulations that streamline the industry and mitigate the risks. Recently, South Korean Supreme Prosecutor’s Office (SPO) created and launched a special task force whose main mandate will be to deal with cryptocurrency related crimes in the country.

South Korea Cryptocurrency Related Crimes Taskforce

In an article published online by Korean Broadcasting System (KBS), the task force main mandate will be to carry out through investigations into any cryptocurrency cases reported. The task force will be working under SPO’s authority and is expected to minimize the cases of cryptocurrencies been used to facilitate crime, money laundering, and other illegal activities such as drug trafficking.

The increase in number of cryptocurrency fraud cases in not only South Korea but also other parts of the world such as Sweden is one of the main reasons why the Korean Government decided to create this taskforce. However, the country’s cryptocurrency industry has been doing well thanks to the new set of regulations and policies.

South Korea cryptocurrency task force

In a recent report posted by Financial Supervisory Service in South Korea, the number of reported counterclaims and fraud cases that are in one way or another linked to cryptocurrency investments has increased by almost nine times since 2016. 53 cases were reported in 2016 but in 2017 a total of 453 cases were filed.

The task force will have to make tactical decisions and implement measures that will enhance the industry and curb the trend. Nonetheless, the number of cases in South Korea is lowered compared to other countries that are also receptive to cryptocurrency and blockchain technology.

For example, in 2018 Japanese police had to deal with more than 7,000 cases all related to cryptocurrency. There is need for Japanese government to come up with a similar task force to prevent this problem from getting out of hand.

Russia is also keen on regulating the ballooning cryptocurrency industry. Just the other day, Russia’s Duma Committee that deals with Financial Markets revealed that it was considering implementing a mandatory identification process for all cryptocurrency users including traders and investors.

The Chairperson of the committee, Antoly Aksakov, revealed to the press that they were in the process of presenting amendments to the existing cryptocurrency regulations in the country. The main goal of these new regulations is to ensure that every person who uses cryptocurrency is identified and recorded.

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