South Korea's Ministry of Justice has launched a special task force to combat the growing spread of cryptocurrency crimes, signaling a major crackdown on fraud and market manipulation.
South Korea is intensifying its efforts to crack down on market manipulation and fraud in the cryptocurrency industry by establishing a special task force in cooperation with local regulatory bodies. according to Regulatory documentthe Justice Department's task force plans to target cases of price manipulation, unregistered cryptocurrency exchanges, and deposit fraud, which have increasingly affected citizens.
The document reveals that illicit activity involving cryptocurrencies in South Korea has already exceeded $1.6 billion this year. The task force aims to dismantle schemes promising high returns on cryptocurrency investments. In addition, the ministry is preparing to implement the Virtual Assets User Protection Law, scheduled to be implemented in July, to ensure the protection of assets held by cryptocurrency users.
The latest initiative underscores South Korea's commitment to promoting a transparent environment for cryptocurrency trading, even though the country lags behind other regions in adopting cryptocurrencies.
As crypto.news previously reported, financial regulators in South Korea are facing increasing pressure to approve exchange-traded funds (ETFs) for cryptocurrencies, following the US Securities and Exchange Commission's recent approval of ETFs for Ethereum. Jung Eui-jung, head of the Korean Shareholder Alliance, stressed the importance of following the US example by endorsing Bitcoin and Ethereum ETFs, reflecting broader frustration with Seoul's cautious approach to cryptocurrency regulation.
