A new task force has been
launched in South Korea to prevent and fight crimes related to
cryptocurrency. South Korea’s Supreme
Prosecutors’ Office (SPO) has launched this new task force.
The Korean Broadcasting System
(KBS) reported that the task force would be focusing mainly on cryptocurrency
fraud and other kinds of crimes that are related to the Fintech industry. All of these activities will be taking place
under the supervision of the Supreme Prosecutors Office. This move has come after an increase in the
numbers of cryptocurrency crimes across the country.
Investigators and prosecutors
from all parts of the world gathered in Seocho-dong, Seoul for the launch of
this task force. This force will be
mainly focusing on curbing fraud, money laundering, and a range of other
illegal activities in the cryptocurrency industry.
This force has been trained to
track the accounts of those who have been suspected of being involved in the
illegal transaction of funds. While it
is not clear about how they will be able to do it, the task force has the power
to share the required information with the respective government bodies. They
will ultimately be able to freeze the accounts and proceed with class action
lawsuits. They will be executing a range
of legal proceedings in this regard as well.
South Korea banned initial coin
offerings to protect the interests of investors thus preventing crypto crime at
the most vulnerable point. Darknet website is also being taken over by the
authorities in this country.
North Korea has been recently
carrying out hacking activities targeting major cryptocurrency exchanges. These hacks are being done to bypass the
economic sanctions on the country. The
UN Security Council Expert Panel reported this information.
This is the first time that the
illegal cryptocurrency activities have been reported. The panel feels that North Korea is
avoiding the tracking process by making use of advanced blockchain technology
The panel members stated that
this provides the regime with “more ways to evade sanctions, given they are
hard to trace, thus can be laundered many times and are independent of
Estimates from the panel state
that North Korea has been carrying out several successful attacks on the Asian
Early in February 2018, South
Korea’s National Intelligence Service (NIS) reported the theft of tens of
millions of dollars in cryptocurrencies in the year 2017 to the North Korean
The panel recommended the member
states to improve on their ability to facilitate robust information exchange by
the Democratic People’s Republic of Korea with their own financial institutions
and others. The task force is an output
of such requirements.