The "Virtual Currency Tracking System" will be used to keep track of past transactions, extract data about them, and verify the origin of funds both before and after transmission.
To combat money laundering schemes and reclaim cash associated with criminal activity, the South Korean Ministry of Justice revealed intentions to implement a crypto-tracking system.
According to local media site khgames, the "Virtual Currency Tracking System" would be used to keep track of transaction history, extract data about transactions, and verify the source of cash both before and after transfer.
The South Korean government announced plans to construct a standalone tracking and analysis system in the second half of the year, even though the system is scheduled to be implemented in the first half of 2023. The statement from the ministry is roughly translated as follows:
“In response to the sophistication of crime, we will improve the forensic infrastructure (infrastructure). We will build a criminal justice system that meets international standards (global standards).”
With the goal of fostering a secure trading environment for cryptocurrency investors, the South Korean police already reached an agreement with five regional crypto exchanges.