South Korea’s National Police Agency plans to implement a system with real-time wallet address monitoring and freeze funds functionalities. To discuss these plans, the police agency is set to hold a meeting with Binance and South Korea’s top 5 crypto exchanges. South Korean authorities actively monitor crypto exchanges and firms, as the country stands as the second-largest crypto market.
The National Police Agency will hold a virtual asset exchange working meeting with Binance and the top 5 crypto exchanges in South Korea on May 30. The agency aims to enable a criminal investigation system that features real-time monitoring of wallet addresses and request fund freezing on Binance. This development follows Binance’s acquisition of a majority stake in Gopax earlier this year, allowing the world’s largest crypto exchange to re-enter the South Korean crypto market.
Binance has its own team that monitors and reports bad actors to law enforcement. In fact, the exchange has provided training to government agencies to combat crypto crimes and ensure compliance with regulators.
In October, the National Police Agency entered into business agreements with the top 5 crypto exchanges to enable a virtual asset exchange confirmation system. When the police search for a wallet address under investigation, it informs the exchange that the police manage it among the five major exchanges.
As of May 2023, 2086 investigators are reportedly using the system. The agency is looking to expand the system to other crypto exchanges, including all 36 domestic exchanges.
South Korea has been strengthening its oversight on crypto markets. The country recently passed the Kim Nam-guk Prevention Law, which requires government officials to disclose their crypto holdings. Authorities are also utilizing blockchain analytics tools to prevent crypto money laundering and crimes.
The Financial Supervisory Service plans to increase the staff of its three investigation departments from the current 70 to 95 and establish a special investigation team, information collection task force, and digital investigation response team.
While the development of such a monitoring system can help regulate illicit activities in the crypto space, there remains a level of skepticism over potential privacy concerns for law-abiding crypto users. With the rapid expansion of the crypto market, countries like South Korea are focused on maintaining control and order to safeguard their citizens from scams and criminal activity. However, striking a balanced approach between close monitoring and respecting user privacy would be crucial in achieving a system that caters to enthusiasts while maintaining order.
Source: Coingape
