The South Korean Ministry of Justice (MOJ) announced Thursday that it will adopt a cryptocurrency tracking system within the first half of 2023 to clamp down on money laundering and improve its ability to claw back criminal proceeds.

See related article: South Korea seeks software to track US$7.2B in illegal crypto

Fast facts

  • The ministry intends to use the system to monitor and probe crypto transactions, and uncover the sources of illegal funds, according to the ministry’s 2023 task report.
  • The MOJ added that it will develop its own crypto tracking and analysis system in the latter half of the year. The department did not disclose the name of the tracking system it is adopting.
  • The MOJ did not answer nor return Forkast’s phone calls on Monday.
  • Last October, South Korea’s Supreme Prosecutors’ Office confirmed with Forkast that it is in the process of purchasing a cryptocurrency tracking system via the Public Procurement Service to hunt down illegal foreign crypto transactions. The prosecutors’ office declined to provide any further details.
  • South Korea’s National Police Agency also formed an agreement with the country’s five major cryptocurrency exchanges last October to collect and gather data that is necessary for crypto-related crime investigations. The South Korean police said at the agreement signing that white-collar crime using cryptocurrencies is on the rise
  • Worldwide illicit crypto transaction volume hit an all-time high of US$20 billion, according to blockchain data firm Chainalysis.

See related article: More bad news for South Korea’s Bithumb exchange with “Kimchi coin” manipulation allegations