South Korea’s Ministry of Justice has initiated a dedicated task force to address the growing incidence of crypto crimes, indicating a significant crackdown on fraud and market manipulation.
The country is stepping up its measures to tackle market manipulation and fraudulent activities within the cryptocurrency sector by forming a specialized task force in partnership with local regulatory entities. As per an official regulatory statement, the task force led by the Ministry of Justice aims to tackle instances of price manipulation, unregistered cryptocurrency exchanges, and deposit fraud, all of which have been on the rise and impacting citizens.
According to the document, illicit activities involving cryptocurrencies in South Korea have already exceeded $1.6 billion this year. The task force is focused on dismantling schemes that promise high returns on cryptocurrency investments. Furthermore, the Ministry is gearing up to enforce the Virtual Asset User Protection Act, scheduled for implementation in July, to guarantee the safeguarding of assets held by cryptocurrency users.
The recent initiative highlights South Korea’s dedication to cultivating a transparent environment for cryptocurrency trading, despite its slower pace compared to other regions in terms of cryptocurrency adoption.
As per crypto.news reports, South Korean financial regulators are facing increasing pressure to authorize exchange-traded funds (ETFs) for cryptocurrencies, particularly following the recent approval of spot Ethereum ETFs by the U.S. Securities and Exchange Commission. Jung Eui-jung, the head of the Korean Stockholders’ Alliance, has stressed the significance of emulating the U.S. model by approving Bitcoin and Ethereum ETFs, mirroring broader discontent with Seoul’s cautious stance on cryptocurrency regulation.
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