Strengthening the crackdown on cryptocurrency fraud
The Ministry of Science and ICT (MSIT) of South Korea announced on the 9th that it will strengthen its surveillance system against phishing scams related to crypto assets (virtual currency) that occur frequently with the soaring market price. He showed his willingness to strengthen the crackdown in cooperation with the National Police Agency.
According to MSIT’s announcement, 32 phishing sites (fake sites) have already been discovered and blocked in the last three months. In 2020, there were 41 cases a year, so it seems that fraud is occurring frequently as the market price soars.
The Ministry of Science and ICT will work with the National Police Agency to strengthen its 24-hour surveillance system and promote a policy of immediately blocking phishing sites as soon as they are discovered.
The National Police Agency has been cracking down on phishing sites since March, and 21 investigations are underway in early May. He explained that there are frequent cases of illegally obtaining exchange account information such as passwords and IDs from virtual currency users and stealing assets.
South Korea tightening regulations
In South Korea, which attracted attention again this spring due to the “Kimchi Premium” phenomenon, in which the spot price of virtual currency exchanges is higher than before, the number of market participants is increasing rapidly. Cryptocurrency-related regulations and crackdown cases have also become prominent.
In March, a decree requiring cryptocurrency-related service providers (VASP) to take measures against maneron (AML) was approved. Behind the scenes are the so-called “Travel Rules” set by the Financial Action Task Force (FATF), an international regulatory body.
VASP includes providers of cryptocurrency trading, custody and management services, as well as digital wallet service providers engaged in cryptocurrency purchase and sale, trading and transmission, storage and management, mediation, etc.
Travel rules are international wire transfer rules to prevent money laundering, etc., and VASP collects and exchanges information on senders and recipients at the time of transactions to guarantee the accuracy of that information. Is required to do.
International identity verification (KYC) rules will be applied to cryptocurrency transfers between eligible VASPs.
In March, the National Tax Agency (NTS) of South Korea cracked down on more than 2,400 people on suspicion of tax evasion using virtual currency.
In May, the cryptocurrency exchange V Global was investigated by the authorities on suspicion of fraud by the MLM, and in order to prevent exit fraud, there was a case where the freezing of assets worth 240 billion won (23.3 billion yen) was permitted. is there.
Images used under Shutterstock license
“Cryptocurrency” means “cryptographic assets”