This step was the response of the authorities to the growing wave of crime in the cryptocurrency space. The activity of the group will, in particular, on the disclosure of fraudulent schemes, the prevention of money laundering, as well as other crimes related to financial technology.
According to KBS, if in 2016 in South Korea there were 53 cases of crimes using cryptocurrency. Also in 2017, when the market reached historical highs, this figure increased already 453. In 2018, the number of such crimes was already 4,591.
It is reported that employees of the task force will be able to track the accounts of persons suspected of illegally receiving funds. How exactly the tools will be used for this is not specified. They can also share relevant information with other government agencies. They will also help in organizing collective claims from investors. Therefore, if necessary, will have the authority to freeze bank accounts.
Crime in the field of cryptocurrency and the desire to protect investors were the main reasons for the prohibition of ICO. Which in September 2017 introduced the South Korean authorities. However, as the above statistics show, this step is hardly justified.
Earlier this year, cryptocurrency exchanges began to combat potential money laundering and other fraudulent schemes. These are the exchanges of South Korea – Bithumb, Coinone, Korbit and Upbit.