The Korean Ministry of Justice Plans To Introduce a Virtual Currency Tracking System

On January 26, the Korean Ministry of Justice announced through the “2023 Government Task Report” that it would introduce a virtual currency tracking system in the first half of the year.

The system is a part of the ministry’s efforts to strengthen the tracking of money laundering using virtual currency and the recovery of criminal proceeds.

Through the tracking system, the ministry will monitor transaction details, extract related information between transactions, and check the source of funds before and after the remittance. The Ministry of Justice also added that it would develop an independent tracking and analysis system in addition to the virtual currency tracking system by the second half of this year.

The ministry stated, “We will overhaul the forensic infrastructure in response to the sophistication and modernization of crime.” To reorganize the infrastructure for the forensic investigation, the Ministry of Justice also plans to operate a national digital forensic cloud system during the first half of this year. According to the plan, the cloud system will be modeled after the prosecution’s digital forensic system (D-Net), enabling other agencies to utilize scientific investigation and forensic know-how.

Meanwhile, the Cyber ​​Investigation Bureau of the National Police Agency signed a business agreement with five major Korean won exchanges in October last year to cooperate in criminal investigation and prevent damages related to virtual assets. The National Investigation Headquarters of the National Police Agency is strengthening its investigative capabilities related to virtual currency through the professional investigator system.

Currently, personnel assigned to the criminal division are looking into dark web and virtual asset use cases related to drug crimes, and cyber investigation specialist investigators are in charge of tracking and investigating virtual assets.

The Ministry of Justice said in a statement, “We will establish a criminal justice system that meets the global standards.”

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