In a bid to address the rising incidents of crypto crimes, South Korea's Ministry of Justice has initiated a special task force, signaling a significant crackdown on fraud and market manipulation within the cryptocurrency industry.

The move comes amidst growing concerns over the prevalence of market manipulation and fraudulent activities in the cryptocurrency space. The task force, established in collaboration with local regulatory bodies, aims to target cases of price manipulation, unregistered crypto exchanges, and deposit fraud, which have increasingly impacted citizens.

According to a regulatory document, illicit activities involving cryptocurrencies in South Korea have already exceeded $1.6 billion this year alone. The task force's primary objective is to dismantle schemes that promise high returns on crypto investments, thereby safeguarding investors from potential financial losses. Additionally, the Ministry is gearing up to enforce the Virtual Asset User Protection Act, slated for implementation in July, to ensure the protection of assets held by crypto users.

This latest initiative underscores South Korea's commitment to fostering a transparent environment for crypto trading, despite lagging behind other regions in terms of crypto adoption. While the country faces mounting pressure to approve exchange-traded funds (ETFs) for cryptocurrencies, following the recent approval of spot Ethereum ETFs by the U.S. Securities and Exchange Commission, South Korean financial regulators are taking proactive measures to address regulatory concerns within the crypto market.

Jung Eui-jung, head of the Korean Stockholders' Alliance, has emphasized the importance of following the U.S. example by endorsing Bitcoin and Ethereum ETFs, reflecting broader frustration with Seoul's cautious approach to cryptocurrency regulation. The establishment of the task force signifies a crucial step towards enhancing market integrity and investor protection in South Korea's cryptocurrency ecosystem.