The South Korean Ministry of Justice is planning to introduce a system to track cryptocurrencies. With this new system, it hopes to combat money laundering and recover funds linked to criminal activity. Plans for this have probably been made in South Korea after the scandal surrounding Do Kwon and Terra.
What is it exactly?
The “Virtual Currency Tracking System” is designed to keep an eye on the transaction history of coins, keep information about transactions and check the source of the funds before and after a transaction. The system should eventually become active in the first half of 2023. Furthermore, the ministry plans to develop an independent analysis system in the second half of 2023.
“In response to the sophistication of crime, we want to improve the forensic infrastructure. We want to build a system that meets international (worldwide) standards,” said the South Korean government. Earlier, the South Korean police started a collaboration with five local exchange platforms to create a safe trading environment for investors.
Bithumb fine
As a result of stricter rules for exchanges in South Korea, local exchange Bithumb, for example, had to pay a fine for a problem from 2017. In November 2017, the exchange platform went offline for 1.5 hours, leaving a lot of people on the platform in the dark. problems came. Transactions fell through and that can cost a lot of money. In the end, the compensation that the exchange platform had to pay according to the court was not too bad.
The most important judgment of the judge in the case is that the damage for the failure of the platform must fall on the shoulders of the stock exchange. Not on the shoulders of the user, who normally pays a commission for the services of the exchange platform. For example, South Korean stock exchange platforms now know that it costs money if they go offline.