Police and Prosecutors Extend Special Crackdown on Illegal and Unfair Virtual Asset Activities Until September

Extension of Pan-Government Special Crackdown Period Until September
Strict Supervision of Illegal Activities During Business Registration Grace Period

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] The government has decided to extend the 'Inter-Ministerial Special Crackdown on Illegal Activities' aimed at preventing damages to participants in virtual asset transactions such as Bitcoin until September.

On the 28th, related ministries including the Office for Government Policy Coordination, Financial Services Commission, Ministry of Economy and Finance, and Ministry of Science and ICT held a vice-ministerial meeting chaired by Koo Yoon-cheol, head of the Office for Government Policy Coordination, and announced the 'Virtual Asset Transaction Management Plan.'

The government stated, "We will add the National Tax Service and Korea Customs Service to the virtual asset-related task force (TF) operated by the Office for Government Policy Coordination to respond comprehensively to illegal activities." They also said, "We agreed on the need to further enhance transaction transparency and strengthen prevention of damages caused by illegal activities such as fraud and unauthorized fundraising, due to the recent rapid increase in virtual asset transaction participants."

First, the inter-ministerial special crackdown period on illegal activities related to virtual assets will be extended until September. In addition, measures such as seizure and confiscation preservation of criminal proceeds will be taken even before prosecution. Since the special crackdown began in April, the police are investigating 41 cases of fraud and unauthorized fundraising, and 27 cases of cybercrimes such as hacking and phishing.

Investigations by prosecution and other enforcement agencies will also be strengthened. Information on virtual asset service providers will be shared among related ministries, and strict measures will be taken against illegal acts such as embezzlement of deposits and planned bankruptcy by service providers.

Furthermore, management and supervision will be strengthened for operators who register after September. Anti-money laundering obligations will be verified to ensure transaction transparency, and compliance with separate management of deposits will also be monitored. If virtual asset service providers fail to maintain Information Security Management System (ISMS) certification after registration, their registration will be immediately canceled or rejected, thereby strengthening post-registration management.

This content was produced with the assistance of AI translation services.