Police and Binance collaborate on criminal investigation system

The police are collaborating with Binance to establish a system for criminal investigations, building upon the existing “virtual asset exchange verification system” with major domestic exchanges. They will convene at the “Virtual Asset Exchange Practical Conference” to discuss practical measures with top cryptocurrency exchanges, including Binance. During this conference, the police are aiming to develop a real-time verification system for wallet addresses, allowing for quick freezing of funds during criminal investigations. 

In October, an agreement was signed with Upbit, Bithumb, Coinone, Korbit, and Gopax to launch the “Cryptocurrency Exchange Verification System.” This system empowers the police to search for wallet addresses under investigation and determine which of the five major exchanges manages them. Currently, requests are processed through a hotline between exchanges, facilitating the swift freezing of funds and warrant execution. The police have ambitious plans to expand this verification system to encompass all 36 exchanges in Korea, including the major ones. 

Regarding Binance’s acquisition of Gopax, although they reported the change in virtual asset operator notification to the FIU, the resolution is still pending. As a result, Binance has been actively engaging in activities within the country. Gopax officials have indicated that the internal evaluation has been completed, but they are uncertain whether it will be approved by the authorities.