South Korea’s Ministry of Justice has launched a specialized task force to address the rising incidence of cryptocurrency crimes. This initiative signals a significant crackdown on fraud and market manipulation within the crypto industry.

A Collaborative Effort

In collaboration with local regulatory bodies, the task force aims to tackle cases of price manipulation, unregistered crypto exchanges, and deposit fraud, which have increasingly impacted South Korean citizens. According to a regulatory document, illicit activities involving cryptocurrencies in South Korea have already surpassed $1.6 billion this year.

Focus on Investor Protection

The task force’s primary objective is to dismantle schemes that promise high returns on crypto investments. Additionally, the Ministry is preparing to enforce the Virtual Asset User Protection Act, set to be implemented in July. This legislation is designed to ensure the protection of assets held by crypto users, marking a significant step towards creating a safer trading environment.

The latest initiative underscores South Korea’s commitment to fostering a transparent and secure environment for cryptocurrency trading. Despite this commitment, the country remains behind other regions in terms of crypto adoption.

Pressure to Approve Crypto ETFs

Amid these regulatory efforts, South Korean financial regulators face increasing pressure to approve exchange-traded funds (ETFs) for cryptocurrencies. This follows the recent approval of spot Ethereum ETFs by the U.S. Securities and Exchange Commission. Jung Eui-jung, head of the Korean Stockholders’ Alliance, has highlighted the importance of following the U.S. example by endorsing Bitcoin and Ethereum ETFs. This reflects a broader frustration with Seoul’s cautious approach to cryptocurrency regulation.

By forming this task force, South Korea aims to strengthen its regulatory framework and protect investors from fraudulent activities in the rapidly evolving crypto market.