South Korea’s Ministry of Justice forms task force to damper crypto crimes

South Korea’s Ministry of Justice has launched a special task force to combat the growing prevalence of crypto crimes, signaling a major crackdown on fraud and market manipulation.

South Korea is intensifying efforts to curb market manipulation and fraud in the cryptocurrency industry by establishing a special task force in cooperation with local regulators. According to a regulatory document, the Justice Department’s task force is targeting plans to target cases of price manipulation, unregistered crypto exchanges and deposit fraud that are increasingly affecting citizens.

The document reveals that illegal activities involving crypto in South Korea have already exceeded $1.6 billion this year. The task force aims to eliminate schemes that promise high returns from crypto investments. Additionally, the Ministry is preparing to enact the Virtual Asset Users Protection Law, which will be implemented in July to ensure the protection of assets held by crypto users.

The latest initiative underscores South Korea’s commitment to developing a transparent environment for crypto trading, even though the country lags behind other regions in crypto adoption.

As Crypto.news previously reported, South Korean financial regulators are under increasing pressure to approve exchange-traded funds (ETFs) for cryptocurrencies after the U.S. Securities and Exchange Commission recently approved spot Ethereum ETFs. face to face. Korean Shareholders Alliance president Jung Eui-jung emphasized the importance of following the US example by approving Bitcoin and Ethereum ETFs, reflecting broader frustration with Seoul’s cautious approach to cryptocurrency regulation.