According to reports from the nation’s Ministry of Justice, the South Korean government will adopt crypto tracking systems during the first half of this year. The tracking system will be used to keep track of and examine cryptocurrency transactions, especially to find the origins of illicit payments.
Tracking of cryptocurrency transactions to begin in South Korea in 1H
The Ministry of Justice of the nation reportedly declared that it would put in place a cryptocurrency surveillance system in the first half of 2023.
The tracking system will be used to follow and examine bitcoin transactions, notably to identify the sources of illicit funding, according to the Justice Ministry’s 2023 task report.
For many months, the Korean government has discussed implementing a mechanism to find illicit cryptocurrency transactions. The nation’s Supreme Prosecutors’ Office announced in October 2017 that it was in the process of using the Public Procurement Service to buy a bitcoin tracking system.
The Ministry of Justice announced that, in the second half of the year, it will create its own crypto tracking and analyzing system.
The MOJ declaration came after Financial Supervisory Service (FSS) Governor Lee Bok-hyun announced earlier in the month that the regulator is intending to create crypto monitoring tools to periodically check the risks linked with crypto assets. In order to gather information for crypto-related crime investigations, the National Police Agency of South Korea also reached an agreement with the five largest cryptocurrency exchanges in the nation in October.
This month, the blockchain data analytics company Chainalysis reported that the number of criminal crypto transactions worldwide reached a record high of $20.1 billion, up from $14 billion in unlawful activities in 2017.
Along with the Korean government, more and more countries are trying to adopt crypto on a daily basis. The Kazakhstani Parliament passes legislation governing cryptocurrency exchange and mining.
Senate approves to adopt crypto laws and transmits it to the Kazakh president
A bill intended to adopt crypto and control cryptocurrency use and related activities in Kazakhstan has been approved by the Senate of the Central Asian country. According to local media, the new law and other legislative documents can help develop the nation’s cryptocurrency ecosystem.
The upper house of parliament decided to propose a few amendments to the Mazhilis, which had already enacted its own version of the legislation, earlier in January after taking the entire package into account. But on January 19, Lower House Speaker Kassym-Jomart Tokayev dissolved it and announced early elections.
According to Senator Bekbolat Orynbekov, who was quoted by the Zakon.kz news portal, the Senate has complete legislative authority up until the election of a new Mazhilis. A unified body of regulations, digital assets law, and related acts will enable Kazakhstan’s president to carry out his regulatory responsibilities for the creation and use of digital currencies.
The law and other essential revisions made by the senators, such as those to Kazakhstan’s laws on the administration of justice, administrative offenses, taxes, and other payments to the budget, have not yet been signed by Tokayev.
Regulating the actions of businesses in the nation that are minting digital currency is one of the government’s main objectives. Following China’s crackdown on the sector, Kazakhstan became a hotbed for cryptocurrency mining. The influx of miners has been blamed for the country’s growing electrical shortage.
The newly passed legislation creates a legal framework for the business and legalises the market for digital assets by requiring licencing for both crypto exchanges and miners. Additionally, the government expects increasing foreign investment to lead to larger state budget receipts.
The new regulations follow a July 2022 decree issued by President Tokayev that required registered crypto miners to pay a higher fee for the electricity they use beginning on January 1. Kazakhstan has been pursuing underground mining farms and illegal trade networks in addition to its regulatory initiatives.