The “Virtual Currency Tracking System” will be used to track transaction history, extract transaction details, and verify the source of money before and after the transfer. South Korea revealed intentions to implement a crypto-tracking system to combat money laundering and reclaim cash associated with illegal activity.

According to local media site khgames, the “Virtual Currency Tracking System” would monitor transaction history, extract transaction details, and confirm the source of funds before and after transmission.

The South Korean Ministry of Justice will introduce a "cryptocurrency tracking system" in the first half of this year to strengthen the tracking of money laundering and recovery of criminal proceeds using cryptocurrencies. https://t.co/2CLkaLUrX6

— Wu Blockchain (@WuBlockchain) January 29, 2023

While the system is expected to be operational in the first half of 2023, South Korea has stated that it would construct an independent tracking and analysis system in the second half of the year. The ministry’s statement is roughly translated as follows:

“In response to the sophistication of crime, we will improve the forensic infrastructure (infrastructure). We will build a criminal justice system that meets international standards .”

global standards

The South Korean authorities previously agreed to collaborate in criminal investigations with five local crypto exchanges in order to promote a safe trading environment for crypto investors.

The South Korean Supreme Court found that cryptocurrency exchange Bithumb must compensate investors for a 1.5-hour downtime on November 12, 2017.

The supreme court’s ultimate decision ruled that damages ranging from $6 to about $6,400 be given to the 132 investors concerned.

“The burden or expense of technological breakdowns should be borne by the service operator rather than [the] service consumers who pay commission for the service,” the court stated.