Ahead of plans to introduce a Central Bank Digital Currency, South Korea looks to deploy a “Virtual Currency Tracking System” to monitor the transaction history of all cryptocurrencies passing through the country and extract the information related to each of those transactions, checking the source of funds before and after remittance.
According to local media outlet khgames, this new measure was introduced by The Ministry of Justice in South Korea to track down laundered funds linked to criminal activities.
The system is due to be rolled out in the first half of 2023, though the Ministry also plans to develop an independent tracking system in the latter half of the year – with a rough translation of the ministry’s statement reading:
“In response to the sophistication of crime, we will improve the forensic infrastructure (infrastructure). We will build a criminal justice system that meets international standards (global standards).”
The police had reviously made a deal with five local crypto exchanges to cooperate in criminal investigations, helping to create a a more secure environment for the retail crypto market.