South Korea’s Ministry of Justice has established a special task force to address the rising instances of crypto crimes, signaling a significant crackdown on fraud and market manipulation in the cryptocurrency industry.
South Korea is ramping up efforts to combat market manipulation and fraud in the crypto sector by forming this task force in collaboration with local regulatory bodies. According to a regulatory document, the task force aims to tackle issues such as price manipulation, unregistered crypto exchanges, and deposit fraud, which have increasingly impacted citizens.
The document reveals that illicit activities involving cryptocurrencies in South Korea have already surpassed $1.6 billion this year. The task force’s objective is to dismantle schemes that falsely 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, to safeguard assets held by crypto users.
This new initiative highlights South Korea’s commitment to creating a transparent environment for crypto trading, even though the country has been slower in adopting cryptocurrencies compared to other regions.
South Korean financial regulators are under increasing pressure to approve exchange-traded funds (ETFs) for cryptocurrencies. This follows the U.S. Securities and Exchange Commission’s recent approval of spot Ethereum ETFs. Jung Eui-jung, head of the Korean Stockholders’ Alliance, has stressed the importance of following the U.S. example by endorsing Bitcoin and Ethereum ETFs, reflecting broader frustration with Seoul’s cautious approach to cryptocurrency regulation.
Summary Review: South Korea’s establishment of a special task force to combat crypto crimes represents a significant step towards protecting investors and ensuring the integrity of the market. With the impending enforcement of the Virtual Asset User Protection Act, the country aims to foster a safer and more transparent environment for cryptocurrency trading, addressing the challenges posed by fraud and market manipulation.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
