South Korea urgently acts to convert its temporary crypto investigative team into a permanent one due to increasing crypto fraud and crime cases. The Justice Ministry plans to discuss with the Ministry of the Interior and Safety in May to formalize the Joint Virtual Asset Crime Investigation Unit, which currently operates under the Seoul Southern District Prosecutor’s Office as a temporary unit. The move aims to ensure the unit's stability amid rising challenges.

The unit, formed in July, comprises 30 experts from seven financial and tax regulatory bodies, focusing on digital asset crimes. South Korea aims to enhance the unit's efficiency by appointing new prosecutors and reviewing budget allocations. This transition reflects the country's commitment to addressing the surge in crypto-related criminal activities.

South Korea faces a surge in crypto-related crimes, as indicated by a February report from the Financial Intelligence Unit, which reported a 49% increase in suspicious transactions by local crypto companies in 2023 compared to 2022. In response, the country is taking proactive measures, including establishing an official investigative unit and implementing comprehensive crypto regulations effective July 19. These regulations aim to protect investors and impose stricter penalties, such as life imprisonment for market manipulation.

In conclusion, South Korea's decision to institutionalize its crypto investigative unit underscores its determination to combat the growing threat of crypto-related crimes. With enhanced resources and a permanent status, the unit is poised to play a crucial role in safeguarding the integrity of the country's financial system.