- While creating its software, South Korea will first use a third-party system.
- That software tracks transactions and extracts payment information.
- Companies such as Bithumb, Colinone, Gopax, and Corbit are said to have participated in this deal.
To combat money laundering, the South Korean Ministry of Justice stated in a task report released on Thursday that it would begin keeping track of cryptocurrency transactions.
To track transaction data, extract data on payments, and determine the source of funds the ministry will first employ third-party software. The company intends to develop its technology, which should complete in the mid of the year.
Last October, South Korean authorities struck a deal with domestic cryptocurrency exchanges Upbit, Bithumb, Coinone, Corbit, and Gopax, promising assistance in criminal investigations involving cryptocurrency. Bithumb is now being investigated for price-fixing and tax fraud. The Digital Asset Basic Act, based on 17 different suggestions, is now being considered by South Korean politicians.
The company’s calculations show that by 2023, 7.9 billion won ($6.5 million) would be invested in the creation of fraud-tracking technology for virtual assets, including 1.98 billion won ($1.64 million) from private sources and 6 billion won ($4.9 million) from the government.
The newly established organization will monitor virtual currency assets and transactions. The cryptocurrency bureau’s many responsibilities include keeping an eye out for any questionable cryptocurrency activities, deciding whether to renew operators’ licenses, and looking at measures to improve investor protection.
In addition, FSC stated that the KFIU would create a Management Planning Division inside the bureau to serve as an advisory body. The body will, however, report directly to the KFIU.
