South Korea Proposes Fund Freezing System for Binance and Major Crypto Exchanges

The National Police Agency of South Korea has revealed its intention to establish a system that allows for real-time monitoring of wallet addresses and the freezing of funds. In pursuit of this goal, the police agency is scheduled to hold a meeting with Binance and the top five crypto exchanges in South Korea to discuss the proposed plans. Given that South Korea ranks as the second-largest cryptocurrency market, authorities in the country are actively engaged in monitoring crypto exchanges and related firms.

South Korea Aims to Implement Real-Time Monitoring System on Binance:

According to local news media, the National Police Agency of South Korea has scheduled a virtual asset exchange working meeting on May 30 with Binance and the top five crypto exchanges in the country, namely Upbit, Bithumb, Coinone, Korbit, and Gopax. The primary objective of the meeting is for the agency to discuss the implementation of a criminal investigation system that enables real-time monitoring of wallet addresses and allows for the freezing of funds specifically on the Binance exchange.

Earlier this year, Binance made a strategic move to re-enter the South Korean cryptocurrency market by acquiring a majority stake in Gopax. As the world’s largest crypto exchange, Binance has established its own dedicated team responsible for monitoring and reporting any suspicious activities to law enforcement authorities.

In fact, Binance has actively collaborated with government agencies by providing them with training to combat crypto-related crimes. These initiatives have been aimed at ensuring compliance with regulatory standards and solidifying Binance’s position as a reputable and law-abiding exchange.

In October, the National Police Agency of South Korea established business agreements with the top five crypto exchanges to implement a virtual asset exchange confirmation system. Under this system, when the police are conducting investigations involving a specific wallet address, they inform the relevant exchange that the address is being managed by law enforcement.

Also Read This Related: South Korea Legislators Approve Law Mandating Disclosure of Crypto Holdings by Officials: Report

As of May 2023, the system is being utilized by 2,086 investigators. The agency aims to further expand the system to include all 36 domestic crypto exchanges, extending its coverage beyond the initial five exchanges.

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In a recent development, South Korea enacted the Kim Nam-guk Prevention Law, which mandates government officials to disclose their cryptocurrency holdings.

Additionally, government agencies have been actively utilizing blockchain analytics tools to enhance their efforts in combating crypto-related money laundering and criminal activities. To strengthen their investigative capabilities, the Financial Supervisory Service plans to increase the number of personnel in its three investigation departments from the current 70 to 95.

Furthermore, the agency intends to establish a special investigation team, an information collection task force, and a digital investigation response team, dedicated to addressing the challenges posed by digital currencies.

Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.

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