South Korea strengthens crypto regulation with LEI adoption and crime unit
South Korea has established an interagency investigation unit to combat cryptocurrency crimes, aiming to address the rise in illicit activities in the market and the need for investor protection, according to a July 26 report.
Concurrently, the Korea Securities Depository announced a business agreement with Code, a company specializing in travel rules, in Seoul to encourage the issuance and usage of LEI (Legal Entity Identifier) in the virtual asset market.
According to an earlier report by local news media, Yonhap News, The Seoul Southern District Prosecutors Office will establish a joint virtual asset crime investigation unit called the Joint Investigation Centre for Crypto Crimes. The unit comprises 30 investigators from seven government agencies and bodies. These include the prosecution, Financial Supervisory Service, National Tax Service and Korea Customs Service, among others.
A separate report from FNNews cited an official statement from Prosecutor General Lee Won-Seok,
The unit's primary focus is on investigating market players involved in issuing or distributing cryptocurrency to identify irregular trading activities and probe associated criminal activities, the reports sai. Additionally, it will expedite the investigative process for crypto-related criminal cases, covering detection, analysis and handling.
The launch coincides with the passing of South Korea's first-of-its-kind legislation at the National Assembly, designed to safeguard crypto investors. The new law introduces penalties, including prison sentences and fines, for individuals engaged in unfair trading practices concerning virtual assets, the utilization of undisclosed information, market price manipulation and illicit transactions.
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